DIVIDEND INCREASE
Comair investors gain on interim profit rise
The British Airways franchisee that operated low-cost airline Kulula reports its aftertax profit for the period ended December 2016 doubled
Comair‚ which rewarded shareholders with a 40% higher interim dividend on Tuesday‚ said upgrades to its fleet and a focus on efficiencies would be the best response to the expected upward trend in the oil price and flat consumer demand. The British Airways franchisee‚ which operates low-cost airline Kulula‚ said on Tuesday its aftertax profit for the period ended December 2016 had doubled to R199m from the previous period’s R84m. Comair declared a interim gross cash dividend of 7c per share to be paid on March 27, up from 5c in the corresponding period. Price elasticity in the market meant Comair was posting relatively equal revenue performance by its two brands, CEO Erik Venter said, with the company seeing better margins in its non-airline operations, including its travel businesses and catering operations. Costs were flat as rand strength offset inflation. This saw a 5.7% growth in revenue to R3.1bn, without a comparable rise in passenger numbers.
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