Fastjet progress

Dino D'Amore
By Dino D'Amore June 2, 2016 17:07

Fastjet progress

Fastjet stated this week that a poor financial performance in 2015 had overshadowed its progress. Revenue grew 21 per cent to $65.1m (£45.1m) from $53.8m in 2014. The company narrowed its post-tax loss for the year to $16.9m from $58.5m. Fastjet also reported an increase in its cash balance at year end to $28.9m from $1.4m at the end of the previous year.

In fact the airline plans to fly to at least four domestic destinations in Kenya if it receives the final clearance from the aviation regulator. According to a notice by the Kenya Civil Aviation Authority (KCAA), Fastjet Kenya seeks clearance to start immediate flights from Jomo Kenyatta International Airport (JKIA) to Eldoret, Kisumu, Wajir and Mombasa. The airline also wants to be allowed to operate non-scheduled air services for passengers, freight and mail in Kenya to various points in Africa, Middle East and Europe. The airline will use A319, CRJ100 and CRJ200 aircraft based at the Jomo Kenyatta International Airport (JKIA).

Colin Child, Fastjet Executive Chairman, commented: “2015 was a year of change and challenge for Fastjet. We made progress in developing our Tanzanian operations, launching Fastjet Zimbabwe and expanding into Kenya but revenues were impacted by a weakening Tanzanian economy and Tanzanian Shilling exchange rate and political uncertainty in the country. As a consequence of these macroeconomic pressures, consumer spending fell and this had a negative effect on ticket sales in the second half of the financial year.

“We’ve taken action to mitigate the effects of this prolonged downturn and have reduced operating costs and overheads by rationalising certain routes, reducing frequencies on particular routes and eliminating other underperforming services and this is progressing well.

“2016 will be focused on developing existing routes and operations consistent with the Group’s long term vision of becoming the first true pan-African low-cost airline. The airline continues to reduce operating costs and overheads and to match capacity to the lower demand now forecast in pursuit of a path to profitability in the medium term.

“Despite the challenges faced in 2015, we are starting to see the benefits of our short term actions and remain confident in our long term strategy where the need for low cost pan-African air travel is evident. The Board believes that fastjet is in a position to move forward from the experiences of 2015 and will benefit from the first mover advantage as the network develops”.

Dino D'Amore
By Dino D'Amore June 2, 2016 17:07