Comair Half Year Financials

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Myle
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Comair Half Year Financials

Unread post by Myle » Tue Feb 13, 2018 8:42 pm

With al the doom and gloom in the Airline section some positive news.

=D> =D> =D>

https://www.businesslive.co.za/bd/compa ... s-revenue/

JSEComair reported an after-tax profit of R203m on Tuesday, up R4m from R199m in the first half a year ago, and earnings and headline earnings per share of 43.6c, from the 42.8c in the comparable period. This resulted from a 13% rise in nonairline operations. A dividend of 6c a share was declared.-listed airline company Comair has reported a record performance for its first half to December 31 2017, despite the constrained economic conditions, says CEO Erik Venter.
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evanb
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Re: Comair Half Year Financials

Unread post by evanb » Tue Feb 13, 2018 10:16 pm

I'm quite disappointed to see how costs escalated by 5% even though the Rand was 11% stronger (average) over the reporting period. Given that nearly a third to a half of operating costs are Dollar denominated this is quite disappointing.
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FoxTROT
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Re: Comair Half Year Financials

Unread post by FoxTROT » Wed Feb 14, 2018 7:06 am

evanb wrote:I'm quite disappointed to see how costs escalated by 5% even though the Rand was 11% stronger (average) over the reporting period. Given that nearly a third to a half of operating costs are Dollar denominated this is quite disappointing.
The interim report explains it as follows:
Operating expenses increased by 5% in the face of local inflationary pressure and higher fuel prices arising from a stronger oil price, which was only partially offset by the strengthening of the Rand. Comair’s fleet replacement programme continues to contribute operating efficiencies which contain the cost pressures, whilst providing an enhanced customer experience.
http://www.comair.co.za/Media/Comair/fi ... r-2017.pdf
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Re: Comair Half Year Financials

Unread post by evanb » Wed Feb 14, 2018 9:09 am

FoxTROT wrote:
evanb wrote:I'm quite disappointed to see how costs escalated by 5% even though the Rand was 11% stronger (average) over the reporting period. Given that nearly a third to a half of operating costs are Dollar denominated this is quite disappointing.
The interim report explains it as follows:
Operating expenses increased by 5% in the face of local inflationary pressure and higher fuel prices arising from a stronger oil price, which was only partially offset by the strengthening of the Rand. Comair’s fleet replacement programme continues to contribute operating efficiencies which contain the cost pressures, whilst providing an enhanced customer experience.
http://www.comair.co.za/Media/Comair/fi ... r-2017.pdf
Indeed, that is where I got the original numbers from. Comair's success has always been their cost discipline. But when you strip out the stronger Rand and oil prices, operating costs rose a little bit faster than they have in the past.
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Re: Comair Half Year Financials

Unread post by FoxTROT » Wed Feb 14, 2018 9:26 am

Besides the higher fuel price, perhaps higher maintenance costs too?
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Re: Comair Half Year Financials

Unread post by evanb » Wed Feb 14, 2018 12:25 pm

FoxTROT wrote:Besides the higher fuel price, perhaps higher maintenance costs too?
We don't know until the annual report, but one would expect the maintenance costs to be falling with the much newer fleet?
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Re: Comair Half Year Financials

Unread post by tansg » Thu Feb 15, 2018 8:01 am

Perhaps they just taking advantage on the advantageous situation to acquire assets/spares/etc to fortify the organisation for the future?
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Re: Comair Half Year Financials

Unread post by Piperdriver » Thu Feb 15, 2018 8:35 am

evanb wrote:
FoxTROT wrote:Besides the higher fuel price, perhaps higher maintenance costs too?
We don't know until the annual report, but one would expect the maintenance costs to be falling with the much newer fleet?
Perhaps these benefits have not fully been realized yet, chatting to SAA engineers they say that comair’s 400’s are becoming more of a problem for them especially since Comair has to procure the parts themselves as SAA apparently doesnt carry them in stores.
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Re: Comair Half Year Financials

Unread post by evanb » Thu Feb 15, 2018 2:54 pm

Piperdriver wrote:Perhaps these benefits have not fully been realized yet, chatting to SAA engineers they say that comair’s 400’s are becoming more of a problem for them especially since Comair has to procure the parts themselves as SAA apparently doesnt carry them in stores.
Comair has certainly accelerated the disposal of the -400s. The interim results note the purchase of another used -800, although I think this has already been noted on here.
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Re: Comair Half Year Financials

Unread post by evanb » Thu Feb 15, 2018 2:55 pm

tansg wrote:Perhaps they just taking advantage on the advantageous situation to acquire assets/spares/etc to fortify the organisation for the future?
Possibly, but this would show under inventories, not operating expenses, until utilized.

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