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1Time Financial Results
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. ":confused: 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.:hmm: |
If true this is not good news. Wonder if Velvet has affected them?
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From Finweek:
Johannesburg - 1time Holdings (JSE:1TM) on Monday posted an 8.3 cents headline loss per share for the six months ended June, from 7.0 cents headline earnings per share in the previous comparable period. Hit by high fuel prices, increased airport charges and poor passenger demand during May and June, the airline incurred a R35.5m operating loss in the period under review from R28.6m profit a year ago. Passenger demand numbers were down 6% resulting from "abnormally" poor numbers in May and June, which was only partly offset by a 5% yield growth. 1time said airport charges increased by 24%, which resulted in a 12 million rand increase in airport costs, while average rand fuel prices increased by 28% for the period, increasing fuel costs by R56.5m. The company said total balance sheet debt had reduced and net working capital improved by R61m since the beginning of the year following the Safair Technical debt-restructuring transaction in February and the black economic empowerment-funding transaction completed in March. Cash generated from operations reduced to R4m compared to R46.3m a year ago. |
Is this the beginning of the end?
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No, but it is, perhaps, the end of the beginning...
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eich! hopefully they pull through! If they can survive these economic times then thye can survive anything!
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Maybe it would be a good start to compare 1Time to the other low cost airlines and their financial results during the time? Does anybody have any info on that?
That should give a good comparison and then we can all begin speculating on whether its the end of the beginning or beginning of the future or whatever...:hmm: I believe they will pull through...personally my low cost airline of choice!!! :ok: |
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