2 Dec 2014 07:00
fastjet plc
("fastjet" or the "Company")
November passenger statistics and operational update
As fastjet celebrates two years of successful operations since its first flight on 29th November 2012 the Company today updates on November passenger statistics, current outlook for December and the impact of the fall in oil prices.
November
fastjet operations in Tanzania carried a total of 63,146 passengers, a 90 per cent increase compared to the same month last year, and achieved a load factor of 77 per cent. The Company's On Time Performance remains excellent at 91 per cent.
December forward sales fastjet reports a very positive forward sales position for December with a 99 per cent increase in current ticketed sales and a 30 per cent jump in average yield versus December 2013. To meet high season demand, fastjet has adjusted the December flying programme to allow for the operation of additional flights on certain routes, maximising revenue opportunities for the month. These extra flights are selling well.
Fuel
fastjet is also pleased to provide an update on the impact of the recent reduction in oil prices on its business.
fastjet does not currently pre-purchase or 'hedge' its future fuel price. The Company pays current market rates for its fuel and is therefore realising substantial benefits from the reduction in the cost of crude oil.
Although fastjet operates fuel-efficient modern Airbus 319 aircraft, fuel represents a very significant percentage of its direct operating costs. As such, the fall in the price of oil delivers a large direct cash benefit to the airline.
The airline procures its fuel via a central buying platform that consolidates the requirements of a significant number of small airlines across Africa. This 'group purchase' plan provides both economies of scale not usually enjoyed by an airline of fastjet's size, and unencumbered access to fuel across the continent.
Commenting on the above, Ed Winter Interim Chairman and Chief Executive Officer of fastjet plc said, "We are very pleased with our trading position in Tanzania. November results are strong as we maximise our market leading position in the country. December is a critical month and the early signs are very positive.."
"With fuel representing around 40% of our operating costs and oil prices forecast to remain at these low levels through early 2015, fastjet is directly benefitting from the reduced oil price."
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Month ending November 2014 November 2013 Change
Passengers Note 1 63,146 33,320 90%
Load Factor Note 2 77% 72% +5pp
Rolling 12 months ending November 2014 November 2013 Change
Passengers Note 1 569,031 357,602 59%
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Notes:
1. "Passengers" are sold seats flown, excluding infants. fastjet bookings are generally non-refundable.
2. "Load Factor" is the number of 'passengers" as a percentage of the number of available seats flown.
3. "on time" - arrival earlier than or within 15 minutes of schedule
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NOTES TO EDITORS
About fastjet plc
fastjet plc is the holding company of the low cost airline fastjet which commenced flights under the fastjet brand in Tanzania in November 2012. The airline introduced Airbus A319s into its fleet. By adhering to international standards of safety, quality, security and reliability; fastjet has brought a new flying experience to the African market at unprecedented low prices. fastjet is implementing the low-cost model across Africa and its long-term strategy is to become the continent's first low-cost, pan-African airline. fastjet plc is also the holding company of Fly540, which operates in Ghana and Angola.
The results of a recent customer satisfaction survey showed that 100% of customers were likely to recommend fastjet to a friend. In developing its strong brand and identity, fastjet has won and been nominated for a number of awards, including winning three Transform awards for the rebrand and launch of fastjet and the award for "Brand Strategy of the Year" at the recent Drum Marketing Awards in London.
fastjet plc is quoted on the London Stock Exchange's AIM market.
For more information see www.fastjet.com