29th Sep 2014 08:12
LONDON (Alliance News) - Fastjet PLC posted a narrower first half loss on Monday as a fall in revenue for the group was offset by a drop in its operating costs in the period.
The low-cost Africa-focused carrier said its loss for the six months to June 30 was USD34.8 million, narrower than the USD41.9 million loss a year earlier.
The narrower loss came despite a fall in revenue in the period, down to USD23.3 million from USD25.5 million, as this fall was offset comfortably by a drop in its operating charges in the first half. Operating charges for the group fell to USD56.3 million from USD64.9 million a year earlier.
The group said its revenue from Tanzania nearly doubled to USD19 million in the half on the back of a 42% rise in passenger numbers over the period. In addition, average revenue per passenger for the period in Tanzania increased 39% to USD81.65. Despite this, the group's trading loss from the Tanzanian operation was USD13.9 million.
Fly540 Ghana and Angola delivered a USD13.5 million hit to its financial results for the period, with USD6.4 million of this related to a foreign-exchange revaluation adjustment of US dollar liabilities.
The group has now disposed of, or suspended, its Fly540 businesses in Kenya, Angola and Ghana.
The group is in the process of expanding its operations to serve other African countries, including Kenya, Uganda, Rwanda, South Africa, Zimbabwe, Zambia and Malawi.
"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," said Fastjet Chief Executive and Interim Chairman Ed Winter.
"This growth in traffic underpins our belief that people across Africa are increasingly embracing the travel opportunities offered by Fastjet's safe, reliable, and great value product, with a high percentage of first time flyers," Winter added.
Fastjet shares were down 10% to 1.33 pence in early trade.
By Sam Unsted; [email protected]; @SamUAtAlliance
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