fastjet gaining in Tanzania but contracting in scope

Although fastjet’s six month interim results to the end of June 2014 show impressive growth for its Tanzania business, they also shows increased losses that have sent shares tumbling. Fastjet Tanzania first-half revenues grew 96% to $19.0m, with a 41.5% increase in passenger numbers with average revenue per passenger for the period up 39.3% to $81.65. Even so, red ink flowed for the period with an underlying EBIT loss of $30.5m, including US$13.9m trading loss for the Tanzanian operation. Fastjet Tanzania aircraft utilisation increased from 5.5 hours to 7.9 hours per aircraft per day during the period and reached 9.9