BizNis Africa
Latest News
Bridge City public-private partnership leads to economic transformation
In his Budget Speech 2018, South African Finance Minister...
PwC comments on proposed 1% VAT rate increase
The Minister of Finance announced in his Budget speech...
National Treasury to assist state-owned companies
South African National Treasury will assist state-owned companies (SOCs)...
SA government to spend ZAR57 billion on free higher education
Government will spend ZAR57 billion on free higher education...
South African budget deficit to narrow by 3.5%
South African Finance Minister Malusi Gigaba says government expects...
GDP growth expected to be 1.5% in 2018
South Africa’s Gross Domestic Product (GDP) is projected to...
Illovo Sugar Africa positive economic impact estimated at ZAR23.8 billion
Illovo Sugar Africa today, 21 February 2018, announced that...
Glencore funds from operations up 49%
Our performance in 2017 was our strongest on record,...
Kwesé and iflix seal deal in sub-Saharan Africa
iflix and Kwesé, have announced an expansion of their...
South Africa gears-up for 2018 Budget Speech
Malusi Gigaba, South African Finance Minister will, today, 21...

Erik Venter, Comair Chief Executive Officer

Comair Limited, today, 13 February 2018, issued its interim financial results, reporting a record first-half performance for the 2018 financial year, similar to that achieved in the first half of the previous year.

This has resulted in profit after tax of ZAR203 million (ZAR199 million in the prior period) and headline earnings per share of 43.6 cents (prior period 42.8 cents).

The airline also reports Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of ZAR604 million (prior period ZAR575 million).

“We’re very pleased with the results, which have been achieved despite a volatile economy and surplus capacity which restricts occupancy levels below international standards. Despite a lack of growth in the economy and the GDP, we saw a 6% growth in both revenue and passenger volumes,” says Erik Venter, Comair Chief Executive Officer.

Venter notes that investment in two major aspects of the company’s operations continue to help offset the constraints experienced by the local airline sector. Firstly, the fleet renewal programme enables Comair’s two airline brands, kulula.com and British Airways (operated by Comair) to operate more competitively than airlines operating older, less fuel-efficient aircraft, while enhancing customers’ experience.

Secondly, Comair’s vigorous expansion of its non-airline business continues its steady growth, contributing 13% to profit and operations to the group.

“A highlight of this first half was being named among the top five JSE-listed companies in terms of growth in cumulative shareholder value in their last five years, equating to annual growth of 41.5% and a total growth of 467%,” says Venter.

“That can only be achieved through a corporate culture that insists on, nurtures and rewards efficiency and competence at every level of the business. Our management of talent is a key differentiator of our operation.”

“While the foremost measures of our success are delivering excellent customer service and shareholder value, we were also proud to be certified by the Top Employer Institute as one of South Africa’s top employers, as a testament to managing that talent,” said Venter.

“It’s also why our non-airline operations like Food Directions, the SLOW lounges, the Comair Training Centre (CTC) and our travel booking operations continue to thrive. The CTC is undergoing a significant expansion and now trains personnel for more than 30 airlines and air forces.”

“Comair has also acquired EPT Aviation Training and Global Training College to bolster our already formidable pilot training facility with enhanced capacity for cabin-crew, passenger handling and travel and tourism training.”

Comair also invested ZAR70 million in a commercial industrial office-park in Kempton Park to expand its Food Directions catering operation.

Looking ahead, Venter says the company intends to capitalize on expanded capacity of its facilities and is well-placed to prosper despite political uncertainty that continues to result in volatile economic conditions.

“Comair is well-placed to operate in such conditions, with strong brands, committed staff, modern, effective equipment, an efficient cost-base and strong cash reserves.” The first of eight Boeing B737-800 MAX 8s will be delivered in 2019, constituting the next phase of Comair’s fleet renewal strategy.

Venter concludes that Comair’s cross-appeal in its claim against SAA for damages arising from anti-competitive conduct will be heard sometime in the next few months. If successful, the damages will amount to around ZAR1.9 billion.

Leave a Reply

%d bloggers like this: