Shareholders cheer Comair’s trading update
Airline says a stronger rand reversed earlier losses on its dollar-denominated debt and it has freed itself from bad bets on the fuel price
Comair’s share price rose 3.4% to R4.24 on Wednesday morning after the airline said a stronger rand reversed earlier losses on its dollar-denominated debt, and it had freed itself from bad bets on the fuel price.
The operator of kulula.com and the southern African franchise of British Airways said it expected to report its basic and headline earnings per share for the six months to end-December would improve by more than 20%.
"The expected increase is primarily due to the strengthening of the rand against the dollar, resulting in the reversal of unrealised translation losses on the dollar-denominated aircraft loan amounting to R98m.
"Furthermore, all loss making open oil hedges had matured by December 31 and no further hedges were entered into," the company said in its trading statement.
Comair did not specify a date when its interim results would be released, saying its was finalising them but did not yet have sufficient certainty to provide specific guidance on the extent of the expected earnings increase.