fastjet, Africa’s low cost airliner, says it 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 at its Tanzania operations. It revealed that its On Time Performance remains excellent at 91 per cent.
The company also reported a 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.
Updating on the fuel prices, fastjet revealed that it does not currently pre-purchase or ‘hedge’ its future fuel price as it pays current market rates for its fuel and is therefore realizing 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,” it said.
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.”
Ed Winter, Interim Chairman and Chief Executive Officer of fastjet plc, said they pleased with our trading position in Tanzania. He said the November results are strong as the group maximise its leading market position in the country, adding that 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.”
