Posted on: 02 June 2016 by Mark Howells
fastjet has released its audited final results for the year ending 31 December 2015, showing a much improved result despite still recording a loss.
Revenue grew to $65.1 million compared with $53.8 million in 2014, leading to a loss for the year after tax of $16.9 million, a significantly better result compared with the 2014 loss of $58.5 million.
The operating loss from continuing activities was $37.9 million, compared with a loss under the same parameters of $43.9 million of 2014. The loss from continuing activities after tax improved to $36.2 million in 2015 compared with $44.4 million in 2014.
From discontinuing activities after tax, a profit of $19.4 million was recorded in 2015, whereas in 2014 there was a loss of $14.1 million.
Operationally the airline’s passenger numbers were up 32% to 787,771, although fastjet Tanzania’s dropped by 6.6 percentage points to 66.7% compared with 2014’s figure.
Last year saw fastjet Zimbabwe begin services and flights from Tanzania to Kenya were finally approved. There was further rationalisation of legacy operations including the disposal of Fly 540 Ghana and Fly 540 Angola being classified as abandoned.
fastjet executive chairman Colin Child commented, “2015 was a year of change and challenge for fastjet. We made progress in developing our Tanzanian operations, launching fastjet Zimbabwe and expanding into Kenya, but revenues were impacted by a weakening Tanzanian economy and Tanzanian Shilling exchange rate and political uncertainty in the country. As a consequence of these macroeconomic pressures, consumer spending fell and this had a negative effect on ticket sales in the second half of the financial year.
“We’ve taken action to mitigate the effects of this prolonged downturn and have reduced operating costs and overheads by rationalising certain routes, reducing frequencies on particular routes and eliminating other underperforming services and this is progressing well,” Child added.
“2016 will be focused on developing existing routes and operations consistent with the Group’s long-term vision of becoming the first true pan-African low-cost airline. The airline continues to reduce operating costs and overheads and to match capacity to the lower demand now forecast in pursuit of a path to profitability in the medium term,” he continued. “Despite the challenges faced in 2015, we are starting to see the benefits of our short-term actions and remain confident in our long-term strategy where the need for low cost pan-African air travel is evident. The board believes that fastjet is in a position to move forward from the experiences of 2015 and will benefit from the first mover advantage as the network develops”.