Low-cost airline 1time is to report a profit of between R47 million and R56 million for the half-year to June.
This contrasts with the first half last year, when 1time made an attributable loss of R6.3 million on the back of sky-high fuel prices, Business Report says.
The paper says the turnaround comes “despite the effect of the recession on business and leisure travel.”
1time made the announcement yesterday, causing shares to leap 34.6 percent to 70c.
The earnings a share and headline earnings a share were expected to be between 22c and 26c.
Airlines have had a torrid two years, with input costs soaring last year because of a fuel price bubble. Just as that cooled, the “Global Recession” hit, slashing demand for passenger and cargo transport.
The profit stands in contrast to massive losses elsewhere. The International Air Transport Association last month warned that the industry as a global whole faced losses of at least $9 billion this year.
IATA CE Giovanni Bisignani describes the present as an “extremely challenging times for airlines.”
He avers that there “are no signs of an early economic recovery. Other external risks are potentially great, including rising oil prices and the impact of Influenza A(H1N1) on demand.
“Cash flow is threatened by weak demand, exaggerated by fare discounting. And, after years of cost reduction, the scope for further cuts is limited.”