For its most recent financial year, ending June 30, 2018, Comair reported a profit after tax of R326 million, which is up R29 million compared to the prior financial year. This despite trading conditions that include poor GDP growth and fuel prices that have increased nearly 15%.
With its non-airline business contributing 25% to net profit before tax, earnings per share (EPS ) increased by 10% to 69.8 cents per share, while headline earnings per share (HEPS) increased by 4% to 69.5 cents per share.
The group generated cash of R946 million from operating activities, resulting in a closing cash balance of R685 million, and has thus approved a final gross cash dividend of 17 cents per ordinary share.
But, Comair's ceo, Erik Venter, says there's still room for improvement: "While profits for the year were good, we're still not achieving the margins that will allow for the optimum pace of upgrading our fleet. The weak economy will maintain pressure on consumer spending while the oversupply of seats in the domestic market suppresses pricing across most routes.”
He added that Comair had made a significant investment in new aircraft over the past five years. “The value of this strategy has now been clearly demonstrated."
Erik said that the airline would carry this strategy forward, "This year we acquired a pre-owned Boeing 737-800 and made predelivery payments on our order for eight new Boeing 737 MAX 8s, the first two of which will be delivered in February. It's a combined net cash investment of R305 million."
