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fastjet on firmer financial footing, says chairman

"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,” Colin Child told investors.

picture of the a Boeing 737 in fastjet livery on the ground against a grey backdrop.
The company appears to have weathered the worst of the storm.

fastjet PLC (LON:FJET) chairman Colin Child said the company is in a position to “move forward” after a tough 12 months.

The Africa-focus low cost carrier was hit by a weakening Tanzanian economy and political uncertainty in the country, which was reflected in the financial performance.

However fastjet has reduced operating costs and other overheads, as well as rationalising routes and frequency to match demand.

 "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,” Child told investors.

“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.”

He was speaking as the company released its prelims for the year to December 31.

While revenue grew 21% in that period the company posted a loss of US$37.9mln (albeit reduced by US$6mln year on year). The cash outflow from the business was US$36.9mln.

The company is on a firmer financial footing following April’s US$75mln equity fundraiser. It has launched fastjet in Zimbabwe and is expanding into Kenya. Passenger numbers, meanwhile, rose 32% to 787,771.

It said the search for a new chief executive is “well advanced” after the exit of Ed Winter in March.

Quick facts: Fastjet PLC

Price: 0.16 GBX

AIM:FJET
Market: AIM
Market Cap: £6.08 m
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