Comair – 2007 looks rosy

COMAIR last week released a trading statement indicating its half-year earnings to December are expected to be 40-60% up on the same period last year when the group reported earnings before tax of R43m. The company attributed this to record load factors. Erik Venter, Comair’s joint ceo, however warned that the group may not hit its target operating margin of 10%. The groups’s fuel bill is expected to increase by about R60m compared to the same period in 2005. Venter said the upgrade of the fleet had contributed to improved efficiencies, despite the high cost of fuel. “The upgrade of the BA fleet is progressing well and we’re well on track to having our new kulula.com fleet in place by the end of 2007,” said Venter. These will mainly be Boeing 737-400s. Lucy Siebert (lucys@nowmedia.co.za)