Comair warns on finances with South African flights months away

Comair warned investors that the grounding of South African air travel has put its finances in a precarious position, with the carrier preparing for at least five more months before it can resume flights. The owner of budget airline Kulula and the operator of local flights for British Airways had slumped to an operating loss of $31m in the six months through December -- before the global coronavirus pandemic forced the grounding of almost all aircraft worldwide. South Africa imposed a strict lockdown in March and, while the government is slowly easing restrictions, a resumption of flights is unlikely before October, Comair said. “The five-week lockdown has caused the situation to rapidly deteriorate to a point where the company finds itself in a very difficult financial position and shareholders are advised to exercise caution,” the Johannesburg-based carrier said Thursday. Comair is working to reduce costs and strengthen the balance sheet to ensure survival, including through job cuts and asset sales. The company is in talks with lenders about providing bridge financing, though negotiations are ongoing.<br/>