Fri Oct 21 17:01:21 SAST 2016

High fuel costs bite into Comair's earnings

By unknown | Sep 18, 2008 | COMMENTS [ 0 ]

Marcia Klein

Marcia Klein

Fuel now represents half the costs of Comair, the airline which flies British Airways in South Africa and regionally, and kulula.

The company, which has reported a sharp drop in earnings for the year to June, said that its fuel bill increased by a massive R380million during the year.

While its turnover increased, the drop in its earnings was largely due to this cost.

It nevertheless managed to generate cash, which enabled it to invest on its new fleet.

These results reflect how tough it has been for the airline industry, where 30 airlines ceased operations in the last six months.

The global airline industry is expected to lose $6billion this calendar year.

Comair directors said that under the circumstances, the company did well to continue its 63-year track record of uninterrupted operating profits, even if these were reduced.

The directors believed that good customer service enabled it to continue to grow both its British Airways and kulula brands.

Kulula services out of Lanseria airport have continued to grow and been well accepted by travellers.


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