Comair shows strong growth despite tough conditions
13 Sep 2017 - by Staff reporter
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%,” Venter says. “Despite inflationary pressure and a 5% increase in the rand price of fuel, our costs remained well contained with a 1% increase overall.”
Venter 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. Venter says all these businesses have performed well and justified further investment.