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Rand to boost Comair earnings
The airline group attributes its improved outlook to a stronger rand and improved international traffic volumes
Comair, which operates low-cost carrier Kulula, says it expects to receive a fillip to its headline earnings per share for the six months to December as a result of 2016’s stronger-than-expected rand. The announcement on Wednesday sent the company’s share price almost 5% higher by the JSE’s close. The group, which operates the British Airways brand in southern Africa, said it expected basic and headline earnings per share to be at least 20% higher than the 18c it posted in the same period in 2015. The expected rise was primarily due to the rand strengthening against the dollar, resulting in the reversal of unrealised translation losses on a dollar-denominated aircraft loan amounting to R98m, Comair said in a trading statement. Furthermore, all loss-making open oil hedges had matured by December 31 2015 and no further hedges were entered into, the company said. Comair’s share price rose 4.88% higher to close at R4.30. Comair’s reported earnings per share of 18c and headline earnings ...
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