Tuesday 11 February 2014

The attached article appeared in Travel Online this morning. Comair are doing their best to discourage competition, as we would expect from a listed company.

Comair profits up, but prices stay the same 

12 Wed, Feb 2014
  
Comair has effectively doubled its profit, as was forecasted at the end of January. But ticket prices won’t come down.

Comair’s revenue also grew by 23%, which, the airline said, was attributable to the 15% increase in capacity arising from the replacement of Boeing 737-300s with the larger 800s. The airline has ordered another four new Boeing 737-800s, which are expected to be delivered in late 2015 and 2016. Cash generations were strong, resulting in a cash balance of R695m, the airline reported.  


Despite the positive results, Erik Venter, CEO of Comair, said in a statement ticket prices would remain the same as the levels are necessary to recover the escalating costs of fuel and the continued devaluation of the Rand. He added that the domestic market was plagued by overcapacity.

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