LONDON (Alliance News) - Africa-focused low-cost carrier fastjet PLC on Monday said its pretax loss narrowed in the first half as it continued to ramp up its operations, carrying more passengers and confirming the delivery of its first owned aircraft, though it expressed caution on the outlook for the rest of the year due to a downturn in key markets.
fastjet said its pretax loss for the six months to the end of June was USD9.9 million, compared to a USD20.0 million loss a year earlier, as its revenue rose to USD31.5 million from USD19.0 million, offsetting cost increases related to the expansion of its services.
The group said it carried 56% more passengers in the half than a year earlier, up to 363,769 from 232,855, while its average revenue per passenger rose to USD86.61 from USD81.69. Its load factor was unchanged at 70.0%.
The group increased aircraft utilisation in its Tanzania business and added new routes and aircraft, including its first in Zimbabwe. In addition, it confirmed Monday the delivery of its first owned aircraft, an Airbus 319, which it intends to use as its first in its Zambia fleet. It said it bought the jet for cash at a discount to its market value of USD15.5 million.
However, despite the robust results, the depreciation of many African currencies against the dollar in the first half and a reduction in commodity prices has resulted in a deterioration of economic conditions in fastjet's key Tanzanian and Zambian markets. As a result, Chief Executive Ed Winter said fastjet has downgraded its forecast for 2015, though it remains confident it will hit 2016 expectations.
fastjet did not provide any figures, but said it does expects a material increase in its loss for the full year due to the problems in its markets.
Shares in fastjet were down 6.3% to 84.30 pence on Monday morning.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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