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Comair sees annual earnings boost from SAA payment

SAA was ordered to pay Comair R1.1bn to settle an antitrust case in February.
Comair says it is still assessing the full impact of the settlement from SAA, the details of which, will be disclosed in its financial report for the year ended June 30 2019. Picture: Supplied

South African airline Comair expects its full year headline earnings per share (Heps) to rise by more than 20%, boosted by a $78 million payment from embattled state-owned airline South African Airways (SAA), it said on Thursday.

Heps, the main profit measure in South Africa, came in at 69.5 cents in the previous year. Excluding the settlement, Heps is expected to be 20% lower, the owner of low-cost airline Kulula.com and franchise partner of British Airways said in a statement.

SAA was ordered to pay Comair R1.1 billion ($78 million) to settle an antitrust case in February after travel agent incentive schemes were deemed anti-competitive by a competition body, paving the way for a damages claim by Comair.

Comair said that it is still assessing the full impact of the settlement, which will be disclosed in its financial report for the year ended June 30 2019. But it expects the award to increase Heps by 277.43 cents.

“An expected earnings and headline earnings range will be published when the Group has reasonable certainty pertaining to the results,” it said.

Comair operates flights in southern Africa under a licence from British Airways.

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One more reason for SAA to simply close the door. No need to switch off the lights – already off!

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