Performance reviewThe team at Comair delivered a good performance despite the recessionary environment and tariff increases of between 30% and 40% from the state owned service providers to the industry. Without increasing the number of scheduled aircraft, our capacity increased by 26% through improved fleet utilisation and the introduction of three larger, more efficient Boeing 737-800 aircraft. A commensurate increase in passenger volumes delivered a 24% increase in turnover, adequate to cover both the inflationary cost increases as well as a decline in average ticket prices in the industry. Earnings per share increased by 27% to 10.3 cents per share (prior year: 8.1 cents per share), with weighted ordinary shares in issue increasing by 17% due to the rights issue in May 2010. During the period the Company invested in a new flight simulator facility and made deposits on its new aircraft for delivery from 2012, totaling R110 million.

Our expansion into Africa progressed with the successful introduction of flights to Dar es Salaam. The roll out of our SLOW lounges at the major airports countrywide has been very well received by business travelers, who have ranked the facilities amongst the best in the world. Following on the launch of improved on-line customer services, including home check-in, we have also launched the kulula.mobi application and improved self-service functionality at the airports to streamline our customers’ experience. Both the British Airways and kulula.com brands received further advertising and service awards during the period.

ProspectsOur focus remains on improving customer service while driving further efficiencies. The replacement of three Boeing 737-200’s with new generation 737-800’s signified the next phase in Comair’s ongoing fleet upgrade programme. We expect that the price of oil will remain above $100 per barrel, and the new aircraft are the key component in managing this cost. We intend to launch two further routes into Africa in the next six months. The potential of an escalating fuel price and further significant increases in airport tariffs remain the greatest challenges to the growth of air travel in South Africa.

DividendsNo interim dividends have been declared as it is the Group policy to consider one dividend annually.

Director’s resignation Following his resignation from British Airways Plc., Rajesh Ramanlal Mehta resigned as a non-executive director on the 31st

of July 2010.

Basis of preparationIn terms of the Listing Requirements of the JSE Limited, the Group has prepared its consolidated interim results in accordance with International Financial Reporting Standards including IAS 34 Interim Financial Reporting, the AC 500 standards as issued by the Accounting Standards Board and the requirements of the Companies Act. The accounting policies used in the preparation of these results are consistent in all material aspects with those used for the previous annual financial statements.

By order of the BoardD Novick GS Novick ER Venter Chairman Joint CEO Joint CEO 14 February 2011

Company SecretaryD Borer

Address and Registered Office1 Marignane DriveBonaero Park 1619PO Box 7015Bonaero Park 1622

Transfer OfficeComputershare Investor Services (Pty) Ltd70 Marshall StreetJohannesburg 2001PO Box 61051Marshalltown 2107

SponsorRAND MERCHANT BANK (A division of FirstRand Bank Limited)

K-8724 [www.kashan.co.za]

Unaudited Interim Results for the six months ended 31 December 2010

Images inspired by SLO

W - The lounge for extrem

ely busy people, launched in 2010.

Abridged Group Statement of Comprehensive Income

Unauditedsix months

31 Dec 2010R ‘000

Unauditedsix months

31 Dec 2009R ‘000

Audited year

30 June 2010R ‘000

Revenue 1,756,663 1,415,703 3,009,544 Operating expenses (1,607,568) (1,297,378) (2,723,009)Operating profit before depreciation 149,095 118,325 286,535 Depreciation (75,149) (64,457) (142,542)Profit before interest,dividend and taxation 73,946 53,868 143,993 Investment income 15,775 16,319 32,751 Interest expense (19,108) (23,775) (45,859)Share of loss of associates (1,392) (3,010) (6,814)Profit before taxation 69,221 43,402 124,071 Taxation (20,823) (10,782) (34,364)Profit after tax attributable to the equity holders of the parent 48,398 32,620 89,707 Other comprehensive income

Fair value adjustment on cash flow hedge net of taxation 4,522 5,181 17,640 Total comprehensive income for the year attributable to the equity holders of the parent 52,920 37,801 107,347

Earnings per share (cents) 10.3 8.1 22.0 Headline earnings per share (cents) 10.3 8.1 22.0 Diluted earnings per share (cents) 10.2 8.1 21.8 Diluted headline earnings per share (cents) 10.2 8.1 21.8 Dividends per share 5.0 5.0 5.0 Ordinary shares in issue (‘000) 489,176 420,000 489,176Weighted ordinary shares in issue ('000) 470,648 400,814 408,295Diluted weighted ordinary shares in issue ('000) 474,680 404,510 412,327Depreciation (R '000) 75,149 64,457 142,542

Reconciliation between earnings and headline earningsProfit after tax attributable to the equity holders of the parent 48,398 32,620 89,707Headline earnings after tax 48,398 32,620 89,707

Abridged Group Statement of Financial Position

ASSETSProperty, plant and equipment 1,064,964 961,765 991,853Investment in associates 76,637 76,317 75,887Available-for-sale-investments - 142,290 153,000Current assets 656,097 573,642 801,833

1,797,698 1,754,014 2,022,573

EQUITY AND LIABILITIESShare capital and reserves 755,053 537,197 725,275Interest-bearing liabilities 245,673 439,242 188,976Deferred taxation 94,702 84,317 78,463Current liabilities 702,270 693,258 1,029,859

1,797,698 1,754,014 2,022,573Net asset value per share (cents) 160.4 134.0 154.1

Abridged Group Statement of Cash Flows

Unauditedsix months

31 Dec 2010R ‘000

Unauditedsix months

31 Dec 2009R ‘000

Audited year

30 June 2010R ‘000

Cash and cash equivalents at the beginning of the period 374,277 309,220 309,220

Cash from operations and investment income 33,859 53,390 247,107

Dividends paid (23,533) (20,040) (20,040)

Taxation (paid) refunded (37,639) 8,672 1,258

Cash utilised in investing activities (80,215) (130,577) (252,836)

Cash Generated by Financing Activities (135,556) 32,086 89,568

Cash and cash equivalents at the end of the period 131,193 252,751 374,277

Abridged Group Segment Report

Segmental Revenue

Airline 1,723,601 1,401,870 2,978,411

Non-airline 33,062 13,833 31,133

1,756,663 1,415,703 3,009,544

Segmental Results

Airline 139,349 111,610 272,834

Non-airline 9,746 6,715 13,701

Profit before taxation and depreciation 149,095 118,325 286,535

Depreciation - Airline (73,274) (64,105) (142,139)

Depreciation - Non-airline (1,875) (352) (403)

Profit before interest, dividend and taxation 73,946 53,868 143,993

Segmental assets - Airline 1,655,883 1,717,827 1,965,959

Segmental assets - Non-airline 141,815 36,187 56,614

Segmental liabilities - Airline (945,001) (1,182,154) (1,259,079)

Segmental liabilities - Non-airline (97,644) (34,663) (38,219)

Segmental capital additions - Airline 82,113 99,334 217,101

Segmental capital additions - Non-airline 66,147 14,843 5,251

Abridged Group Statement of Changes in Equity

Opening Balance 725,275 517,722 517,722

Rights issue - - 115,978

Total comprehensive income for the period 52,920 37,801 107,347

Dividends paid (23,533) (20,040) (20,040)

Equity settled share-based payment adjustment 1,714 1,714 3,428

Net effect of share trust activities (1,323) - 840

Closing Balance 755,053 537,197 725,275

Unaudited Interim Results for the six months ended 31 December 2010Incorporated in the Republic of South Africa. Registration number: 1967/006783/06.Share Code: COM. ISIN Code: ZAE000029823. (“Comair” or “the Company” or “the Group”)