Comair rewards its shareholders
Operator of kulula.com says there is surplus capacity in the market, resulting in occupancy levels that are low by international standards
Comair, the operator of budget airline kulula.com and the southern African franchisee of British Airways, rewarded its shareholders with a 40% higher interim dividend on Tuesday Comair declared a 7c interim dividend, up from the matching period’s 5c, after more than doubling aftertax profit to R199m for the six months ended-December from R84m in the year-earlier period. Interim revenue grew 5.7% to R3.1bn. But this came from raising ticket prices, not from increasing its passenger numbers. "We continue to see surplus capacity in the market, resulting in occupancy levels that remain low by international standards," CEO Erik Venter said in the result statement. The airline operator’s share price rose 1.9% to R4.89 after it released its results. Comair suffered a R71m loss in the previous year’s interim results due to a bad bet of fuel prices. It has taken no more fuel hedges since the end of 2015, and was fortunate in that oil prices remained relatively stable over 2016. During the re...
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