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| PW cabin crews |
Precision Air has posted a pre-tax profit increase of almost 20 per
cent but was limited by massive shilling depreciation.
The airline, which its financial year starts at April, posted a pre-tax
profit of 1.84bn/- up from 1.55bn/- registered in the previous year, being its
first financial results after having been listed last year.
"This capacity has been taken up very well thus bolstering the
company's performance and reinforcing the (airline's) position in the
industry," the designated nation carrier said.
The airline said in a statement released yesterday: "We are
pleased to report that despite the many challenges faced by the aviation
industry, Precision Air recorded impressive performance during 2011/12."
Orbit Securities Head of Dealings and Operations, Juventus Simon said
the airline industry last year was challenging one as despite the Precision Air
having posted impressive revenue, it ended up getting very little.
"Last year, many airlines passed turbulence weather and posted
revenue decline or losses including the world heavy weight, but Precision (Air)
emerged on a strong note," Mr Simon told the 'Daily News'.
He said poor exchange rate and financial cost of 7.65bn/- also have
contributed heavily on the airline to register a marginal profit though for
long term investors, the airline's share is a good buy.
"I think share price remain at the current level (of 470/-), but
the profit attained is encouraging, if I have to put them in scale is
50/50," the stockbroker said.
PW total revenue during the year under review reached 163.06bn/- but
the cost of sales was at 117.06bn/-, which analysts said the industry nature of
business is complicated as it left the airline to remain with a relative low
income.
In the same year, due to exchange rate fluctuations the airline lost
3.07bn/- up from 2.25bn/- of previous year, which is 38 per cent due to weaken
shilling in the corresponded financial year.
Nevertheless, the airline said it has embarked on a fleet expansion
programme where it order five brand new ATR 600 latest series into the fleet
and older series ATR 42-320 which have delivery period of three-year.
"The increase of capacity is required to facilitate the execution
and achievement of the airline's five years strategic plan," the airline
said in the release without mentioning dividends offer.
Tanzania Securities Chief Executive Officer, Mr Moremi Marwa said even
though Precision Air did not declare dividends, the profit they made was
"better than nothing (loses)."
Source: The Daily News, http://www.dailynews.co.tz,
reported by Abduel Elinaza
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