Hi, from the IOL Business Report website. I'm not sure where the R22m loss occured.
Cheers
BA/Comair keeps us in the dark
September 3, 2003
By Audrey d'Angelo
Cape Town - British Airways/Comair has again given no clue to the contribution of its wholly owned subsidiary, kulula.com, to its results for the year to June.
The no-frills airline, which is believed to have taken passengers from all its competitors, including Comair itself, did not have its results separated from those of its parent company Piet van Hoven, the managing director of the group, said yesterday that the domestic flight market was overtraded, putting pressure on yields and passenger loads.
Operating margins had been tight, with cost fluctuations linked to exchange rates and high fuel costs.
"Jet fuel accounts for about 25 percent of the company's total operating costs while about 45 percent are linked directly to the rand/dollar exchange rate.'
However, Van Hoven said: "We have no US dollar exposure on any of our aircraft."
The airplanes were leased under an agreement structured by a South African bank with payments made in rands.
Despite the difficult conditions, BA/Comair maintained its operating profit at R11.9 million before exceptional items.
Headline earnings a share were 6.5c and a dividend of 2c a share will be paid. Revenue grew 7 percent to R1.3 billion. Cash generated by operations was strong at R66.7 million, adding to a cash balance of R168 million at year-end.
Comair closed 3c up at 96c in Johannesburg yesterday.
www.iol.co.za