thepoll
Poll: What was the biggest story of the year?
ADMs (airlines clamping down on travel agents for mistakes on the GDS)
SARS (auditing travel agencies for VAT on earnings on international air tickets sold by local vendors)
PCI DSS compliance (trade chases its tail as the March 3 deadline fast approaches)
Treasury stopping TMCs from earning commission and overrides on government travel
Flight Junction defaulting on its Iata guarantee, costing airlines millions
The challenges facing SAA
Security concerns impacting travel (natural disasters and terrorist attacks)

Submit
NewsArticle
Comair shows strong growth despite tough conditions Today's News


Print   Send to a friend

Comair Limited issued its annual financial results yesterday (September 12), reporting a 54% increase in profits to R297m and a 28% increase in cash generated by its operations.

The company also reported that income generated by its non-airline brands now constituted 20% of its earnings. Erik Venter, ceo of Comair, says these results support Comair’s strategic focus.

“In the continued absence of meaningful GDP growth in South Africa, our domestic airline-passenger market has yet to expand into its surplus seat capacity, which constrains industry occupancy levels at below the global average. Average global seat occupancy is 80,6% as per Iata, while Comair has an average of 75%,” Erik says. “Despite inflationary pressure and a 5% increase in the rand price of fuel, our costs remained well contained with a 1% increase overall.”

Erik adds that the weak economy and narrow profit margins in the airline industry have favoured the pursuit of growth from Comair’s non-airline businesses. This approach has been rewarded with strong performances by the travel businesses, including kulula holidays, the Comair Training Centre, the Slow lounges and the Food Directions catering operation. Erik says all these businesses have performed well and justified further investment.

Today's News



comments powered by Disqus
Today'sNews
 latest  previous
Severe weather delays travellers at Heathrow
As the UK continues to experience severe weather...
Gatwick expansion to increase operational efficiency
Gatwick is to boost its operational efficiency by...
Airport follow-home robbers nabbed
A group of follow-home robbers were arrested on...
Abu Dhabi’s Louvre snaps up da Vinci painting
The rediscovered Leonardo da Vinci painting,...
Avis adds Nissan X-Trail to Namibia fleet
The Nissan X-Trail, a speciality all-wheel-drive...
Poll: What was the biggest story of the year?
We would like to know which news development in...