...to subsidise and support SAA, SA Express and Mango.
South Africa: SA Express Flying High on New Fuel-Efficient Aircraft
Business Day (Johannesburg)
13 November 2008
Julius Baumann
Johannesburg
DESPITE a surge in fuel prices in the year to September, regional airline South African Express (SAX) posted a net profit of R201m, boosted by a 14,3% rise in turnover.
In the year under review oil prices surged dramatically, reaching a record $147 a barrel in mid-July. Yet the state-owned airline's total fuel cost decreased 0,1% to R286,87m from R287,17m the year before.
SAX, which did not hedge against the rising oil price during that period, attributed the cost containment to the use of modern, fuel efficient aircraft.
SAX has grown its fleet to 21, taking delivery of two new Bombardier Q400m turboprop aircraft during the year. A further two aircraft will be delivered by the end of the year.
The operating profit margin increased from 19% in the last financial year to 25% this year due to a positive growth in revenue and operational efficiency gains.
"Our financial success is also the result of investing in the right aircraft. Our aircraft are more efficient with lower fuel burn," said CEO Sizakele Mzimela.
She said the volatile oil price continued to pose challenges for SAX. "In response, we have acted swiftly to manage capacity, preserve liquidity and aggressively manage our costs."
During the year the airline increased the number of passengers carried during the 2007-08 financial year 6%.
Rich Mkhondo, head of corporate affairs, said the airline would continue to expand its network in the year ahead.
And now we understand their concerns, as one of the Government "Sponsored" airlines makes 324% more profit than the Novicks
Rising fuel costs eat into Comair’s Profit
By: Chanel Pringle
Published: 17 Sep 08 - 10:45
Operator of British Airways and kulula airliners in Southern Africa, Comair, on Wednesday reported that the second half of its 2008 financial year had been the toughest trading environment in the history of the airline industry, with high oil prices negatively impacting on the group's costs and earnings.
The group, led by joint-CEO's Gidon Novick and Erik Venter, said in a statement to shareholders that oil now represented over one-half of its costs.
Comair's net profit declined by 43% to R62-million for the year ended June 30, compared with R109-million the year before, mainly owing to a R380-million increase in the group's fuel costs.