Fri, 18 Oct 2019

Comair profit jumps 184% thanks to R1bn from SAA

News24
17 Sep 2019, 17:43 GMT+10

In a trading update on Tuesday morning - released hours before its results for the year to end-June are due - Comair Limited [JSE:COM] announced on that its headline earnings per share will be 184% higher than in the previous year.

This is a "direct consequence" of a massive payout it is getting from SAA. Comair, which operates kulula and British Airways in Southern Africa, won a legal settlement from SAA after a fight about SAA's incentive scheme for travel agents, which was in place from 2001 to 2006.

Comair contended that the scheme was in breach of the Competition Act, and won R1.1bn plus interest - as well as legal costs.

Read: Comair: We have been profitable for 72 years

Its results will be released later on Tuesday. Comair is expected to give more details about its contract with Boeing for eight of its controversial 737 MAX 8 planes. Comair ordered these planes before they were grounded around the world following the crash of an Ethiopian Airlines 737 MAX 8. Comair has already taken receipt of one of the plane, which has not been in the air since March.

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