Quote:
"
1Time - low demand and high costs cause losses
Low-cost airline 1Time has been hit by a combination of higher costs, including a rise in airport charges, and lower passenger demand, in the six months to June, according to Business Report on Thursday.
The airline expected to announce a loss of between 12.6c and 13.9c a share.
In a trading statement, 1Time said this was due to a 28 percent rise in average rand fuel prices, resulting in an additional cost of R56.5 million for the period, poor passenger demand during May and June, and a 24 percent hike in airport charges resulting in an additional cost of R24m.
However, its aircraft maintenance business turnaround was on track. The company said this business came close to break-even for the period from an R22.6m headline loss during the last financial year. Its stock declined 5 percent on Wednesday to close at 38c. "
Rumour has it that their Commercial Director has resigned. I wonder how big the director's bonusses are going to be this time round.
I sincerely hope the maintenace department can help carry the airline a bit in these economic times. Its gonna be difficult for any SA airline to make good profits if any.
They seem to be loosing a lot of skilled people lately which can't be good in this tough operating environment since it impacts on efficiency and moral.
