Comair - Trading update
Comair Limited
(Incorporated in the Republic of South Africa)
(Registration number 1967/006783/06)
("Comair" or "the Company")
JSE Share code: COM ISIN number: ZAE000029823
Trading update
Comair shareholders are advised that due to the following factors, the results
for the year ended 30 June 2003, will be below that of the previous comparative
period:
- The prospects noted with the release of Comair"s interim results in mid
February 2003 have not materialised;
- Revenue in the final quarter was below expectation due to market overcapacity
impacting negatively on yields and a more severe than expected seasonal downturn
in May and June;
- Expected savings on fuel costs were only achieved at the end of the financial
year due to high crude oil prices resulting from the Iraq war and the
uncertainties leading up to it;
- The cost benefits of the stronger Rand were not fully achieved due to normal
time lags and currency hedging activities; and
- The Company has purchased three B737-300 aircraft from Qantas to replace three
B737-200 aircraft which will be retired with two B727-200 that were withdrawn
from service during the year. A R35 million exceptional item impairment write
down will be made for the year ended 30 June 2003, to reflect lower resale
expectations in line with world markets currently.
Further details relating to the profitability for the year ended 30 June 2003,
will be provided when the provisional results are published.
Year ending 30 June 2004
Management are cautiously optimistic regarding the prospects for the June 2004
financial year. The full benefits of the stronger Rand will impact favourably
on costs while jet fuel costs appear to have stabilized within an acceptable
range.
By order of the Board
Johannesburg
11 July 2003
Sponsor
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