Comair maintains profitability despite oil price spike

The company announced a record first-half increase of 12 percent in revenue despite negative GDP growth.

Comair CEO Erik Venter (pictured) announced on Tuesday that even with the oil price spike in October that impacted their half-year results, their performance remained in line with the previous year’s. 

The company announced a record first-half increase of 12 percent in revenue despite negative GDP growth for two consecutive quarters. This revenue growth was offset, however, by sharply increased fuel prices and the need for short-term aircraft leases.

Consequently, earnings per share and headline earnings per share declined by 38 percent. 

The elevated fuel price also contributed to the increase in airline operating costs of 17 percent and a decline in cash generation from operations. 

“Despite these pressures , the group maintains an unbroken record of 72 years of profitability, thought to be unique globally,” says Venter.

Airline passenger revenue increased by 11 percent and average seat occupancy increased on both kulula.com and an airline under the British Airways livery (operated by Comair), but remains below global industry standards. 

Venter said:

“We’re very grateful to our customers and other stakeholders for their support. Special thanks must go to our personnel in our airline operations who’ve worked hard – sometimes in difficult circumstances – to ensure our customers reach their destinations for work or a holiday.”

Read more: Comair's Kirsten King: Flying high and staying grounded