Comair said it will need “more cash” to “maintain its activities on a long-term basis.” This was revealed in the most current company rescue status report, which was released at the end of January.
The “Covid-19 Omicron variant, and the resulting foreign travel prohibitions, particularly by the government of the United Kingdom,” according to the firm, had an “adverse impact on flown income for the company versus its predicted revenue over the holiday season.”
Simply put, the inbound visitors it had anticipated, notably, those flying on British Airways, did not show up.
According to the article, in January, the airline undertook a financial investigation, which revealed that it had “lost about R100 million in previously booked but ‘unflown’ money.”
The airline states its executives are “considering several possibilities” in order to satisfy its cash requirements in the short to medium term, in collaboration with the “Comair Rescue Consortium” (whose offer was accepted by business rescue practitioners and creditors in September 2020).