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Fastjet PLC

UPDATE - Fastjet carries more passengers but loads drop

On a rolling basis, total passengers carried this year are up 52% to 777,000.

Fastjet-tailfin(Resized).jpg
The Tanzania-based business flew around 76,600 passengers in September.

-- adds detail, broker comment, share price --

Low-cost airline Fastjet (LON:FJET) carried a third more passengers in September over a year ago as a fourth jet joined the fleet.

The Tanzania-based business flew around 76,600 passengers in September, though the load factor dropped 10 percentage points to 64%.

Loads (how many passengers were carried by each plane) were affected by tough economic conditions in Tanzania as well the extra seats available said Ed Winter, chief executive.

Month-on-month, capacity rose by 15and flights began between Dar es Salaam and Johannesburg. The number of flights on other routes also increased.

Ed Winter said: "As outlined in our interim results statement on 28 September, difficult trading conditions in Tanzania have placed pressure on revenues and load factors. 

"In light of this, and a significant increase in capacity, we are pleased to have achieved a load factor of 64%. 

"I am also delighted to report that we are in the final stages of the Air Operator Certificate application process in Zimbabwe, with the demonstration flight having been completed on 30 September."

On a rolling basis, total passengers carried this year are up 52% to 777,000.

Fastjet also announced that Nick Caine, chief financial officer, is to leave and return to Australia in 2016 in order to continue his career nearer to his family and his home.  A replacement is being sought.

Broker Sanlan said: “Although the outlook for the remainder of the year is volatile, the valuation methodology used in our model is focused on the medium and longer term investment case.

“The group’s 1H15 US$70mln of net cash should fully fund the expansion plans.”

Shares eased to 80.9p.

Quick facts: Fastjet PLC

Price: £0.01

Market: AIM
Market Cap: £54.16 m
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