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fastjet shows strong growth in passenger numbers

Sep 30 2014 10:23
Fin24

Johannesburg - Low cost African airline fastjet has announced its unaudited interim results for the six months ended June 30 2014 and operational highlights of 2014 to date.

Financial highlights

Tanzania's first-half revenues grew 96% to $19.0m, with a 41.5% increase in passenger numbers.

Tanzanian average revenue per passenger for the period grew 39.3% to $81.65.

There was a first-half underlying earnings before interest and tax (Ebit) loss of $30.5m, including $13.9m trading losses in the Tanzanian operation.

Fly540 Ghana and Angola had a $13.5m adverse effect on the first half financial results of which $6.4m related to a foreign exchange revaluation adjustment of US dollar liabilities. During the period under review, less than $100 000 of fastjet cash was utilised in legacy Fly540 operations.

Operational highlights

Flights have been successfully launched from Dar es Salaam in Tanzania to Lusaka in Zambia in February 2014, from Dar es Salaam to Harare in Zimbabwe in August 2014 and from Dar es Salaam to Entebbe in Uganda in September 2014.

Fly540 Ghana and Fly540 Angola loss-making services remain suspended, with restructuring activity underway.

The group disposed of its investment in Five Forty Aviation Limited in Kenya in June 2014.

A variety of additional revenue streams were added to the business mix during the period - including car rentals, hotels and car parking.

"We are delighted to have seen a steady increase in the number of passengers travelling on core Tanzanian routes, with revenue growth of 96% against the same period last year," said fastjet's CEO and interim chair Ed Winter.

"Strong underlying traffic growth in the first half of 2014 continues to demonstrate that fastjet's low-cost airline model works in the African market."

He said this growth in traffic underpins fastjet's belief that people across Africa are increasingly embracing the travel opportunities offered by fastjet as seen in the high percentage of first time flyers.

"Additional services from our Tanzanian base in Dar es Salaam to Lusaka, Harare and Entebbe, linking these land-locked countries to the port of Dar es Salaam, have proven successful and are performing well," he said.

"Although these routes are in their infancy, there is every indication that these will develop into valuable routes for the fastjet Tanzania pan-African network."

Prior to these routes being launched there were no direct air services linking Dar es Salaam with either Harare or Entebbe.

"During the period, we added additional revenue streams to the business mix including car rentals, hotels and car parking and early indications suggest that these services are proving popular with our customers," he said.

"fastjet continues on its path of expansion, leveraging our first mover advantage to the benefit of our customers and shareholders."

- Fin24

fastjet  |  africa  |  airlines  |  travel and leisure  |  aviation
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