Picture: ISTOCK
Picture: ISTOCK

Comair’s share price took off on Monday, climbing as much as 4% after the low-cost carrier said headline earnings per share for the year to the end of June should be at least 85% higher than the previous period’s.

The operator of kulula.com and the Southern African franchise of British Airways said this was primarily due to a recovery of foreign exchange losses related to a restatement of dollar-denominated aircraft loans. The company has also shrugged off losses from oil hedges it suffered in previous years.

One analyst also attributed Comair’s performance to its tight efficiencies. Earnings per share were expected to be 49%-68% higher than the previous period’s. Headline earnings per share were expected to be 85%-104% higher at 67c-75c, the company said.

Transport economist and aviation expert Joachim Vermooten said Comair had been able to get targeted efficiencies out of operations and had diversified income streams. "But I think that it is good management and systems, and a focus on ancillary income," he said.

The company said earlier it was seeing better margins in its nonairline operations. Comair reported a R71m loss in the previous year’s results due to the oil hedge and has not taken any fuel hedges since 2015.

Its share price was 2.72% up at R5.29 at Monday’s close.


Please sign in or register to comment.