Message from the acting CFO
The year under review was marked by structural changes within South African domestic market, such as the grounding of two regional airlines and the reduced number of routes and frequencies of an established airline with the resultant effect being specifically on domestic traffic volumes. Total departing passengers grew by 1.4% while aircraft landings reduced by 2% when compared to the prior year.
The impact of the operational traffic volumes combined with an increase in tariffs of 5.8% resulted in a 5.5% increase in total revenues. The Group has also experienced some significant cost pressures, specifically in relation to security services as a result of amendments to regulations and heightened security measures implemented during the year. The weak economic climate has also impacted the recovery of customers’ debts, and newly issued accounting standards resulted in a higher provision for impaired debts in excess of previous year.