COMAIR'S focus will remain firmly fixed on lucrative routes in South and Southern Africa despite cautioning tough times ahead.
The group announced that, although it had managed to increase its turnover by 19%, profit for the year had declined 14%. Affiliated businesses like Comair's online travel business performed well and are making an “increasing contribution” to the company's bottom line.
In addition to launching such initiatives as its new concept lounge and business facility, SLOW, opposite the Gautrain station in Sandton, Comair has added capacity on certain routes and expanded its services from Lanseria airport regionally.
This growth from Lanseria, it says, will be put under pressure due to Gautrain services to OR Tambo International Airport, as well as the introduction of a competitor at Lanseria.
The venture with Solenta Aviation does, however, mean Comair could access smaller routes domestically and regionally, it said.
"While we did add capacity in the local market over the period, post-World Cup there has been little revenue growth in the market. As a result, while we have grown market share, our average selling price declined putting pressure on our margins," the group said in its results.
The outlook for the next year, it said was one of caution. "We are anticipating a flat travel market due to a weak economy and ongoing financial pressure on consumers. A stubbornly high oil price and unaffordable airport fees will be, unavoidably, passed on in the form of higher ticket prices, putting further pressure on the consumer. We have adjusted capacity on certain routes in anticipation if this."
Tough times ahead – Comair
Tough times ahead – Comair
15 Sep 2011 - by Natalia Rosa
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