Comair reports 50% profit loss
Comair has reported a 50% decline in interim profits due to the weakening rand, and has said that fleet upgrades "remained the best solution to the expected recovery in fuel price".
The carrier reported profit for the period ending in December down to R83.7 million (USD5.3 million) from R163.6 million (USD10.3 million) in the previous corresponding period.
A weaker rand has led Comair to revalue the dollar denomination of a USD27 million loan for one aircraft, which resulted in a R91 million value increase in the company’s debt.
"The fleet upgrade is to replace aircraft that are becoming too expensive to operate, so they do not add additional capacity, but significantly improve efficiency. " Comair CEO Erik Venter said.
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