South African airline Comair posted an operating profit of ZAR40.7 million rand (USD$6.73 million) in the half-year to December as a strong rand helped cut costs and new, bigger planes improved efficiency.

"Volumes are expected to remain strong, but with sustained pressure on yields due to excessive market capacity. Costs remain favorable... Prospects for the full year appear promising under current trading conditions," the company said.

"The market was impressed with the results and that it's turned around from making losses to profitability," said Ferdi Heyneke of Afrifocus Securities.

But Heyneke warned that the industry was still tough and noted it would be a challenge for Comair to maintain its performance in the current environment as stiff competition continued to pressure margins.

"There is currently a price war underway so we can't say how far they will go, but they are an innovative company," he said.

Comair operates a local British Airways franchise and also the no-frills airline kulula.com. The latter competes with recently launched low-cost airline 1Time.

Both have benefited from the stronger rand against the US dollar which offset rising oil prices.