1time Holdings Ltd. (1TM) fell to the lowest in more than three weeks after the chief executive of its airline subsidiary quit.
Shares of the company fell 5 percent to 19 cents at the end of trading in Johannesburg, the lowest level since Feb. 17, taking losses over the past three days to 24 percent. The stock’s trading volume today was more than double the six-month average, according to data compiled by Bloomberg.
Rodney James stepped down as chief executive officer from 1time Airline (Pty) Ltd, and Executive Director Michael Kaminski also resigned, Johannesburg-based 1time said in a statement today, without giving reasons for the resignations. 1time Holdings CEO Blacky Komani has been appointed to replace James immediately, the company said.
“Airlines are going through a perfect storm right now,” Keith McLachlan, a senior equities analyst for small and mid-cap companies at Thebe Stockbroking Pty Ltd. in Johannesburg. “The economy is tough and oil prices are high and airlines are reporting big losses. Add to that top management changes at 1time and you get something that is not good.”
Crude prices climbed more than 5 percent last year, while the rand declined 18 percent, adding to costs for South African airlines that pay for fuel in dollars.
Earnings per share for the year through December probably fell more than 20 percent, 1time said in a regulatory filing on Dec. 9.
Komani was in a meeting and was unable to respond to a phone call from Bloomberg, a company representative said. A former non-executive director of the airline, Komani replaced Glenn Orsmond, who resigned on Oct. 1, as group chief executive officer.
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