Comair interim results December 2017
Revenue for the interim period increased to R3.3 billion (2016: R3.1 billion).Profit from operations grew to R387.1 million (2016: R363.5 million). Profit for the period attributable to owners for the period was higher at R202.7 million (2016: R198.5 million). In addition, headline earnings per share increased to 43.6 cents per share (2016: 42.8 cents per share).
Cash dividend declaration
Notice is hereby given that a gross interim cash dividend of 5.00000 cents per share (prior period gross interim cash dividend of 7 cents) payable to ordinary shareholders was approved and declared by the board of directors for the six-month period ended 31 December 2017. The dividend was declared out of income reserves.
Given current volatile economic conditions, it is expected that pressure will be maintained on consumer spending and we therefore foresee continued pressure on margins in the airline industry. Comair is however well placed to operate in these conditions, with strong brands, committed staff, effective equipment, an efficient cost base and strong cash reserves. Despite mention in the media of a reduction in the flight schedules of some state-owned airlines, it is not anticipated that there will be any reduction in the total capacity operating in the domestic market.
We anticipate that the Rand/dollar exchange rate and the oil price will remain volatile going forward. The ongoing upgrades to our fleet provide mitigation to the increase in the fuel price while providing incremental revenue per flight and an improved customer experience. The delivery of the next eight Boeing 737-8 Max aircraft remains scheduled for commencement in 2019.
We foresee that the non-airline businesses, namely the travel business, flight training, catering and airport lounges, will continue to increase their contribution towards profits and will receive ongoing focus.
The above outlook has not been reviewed and reported on by ComairĘs external auditors and does not constitute an earnings forecast.
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