fastjet operations in Tanzania carried a total of 63,146 passengers, a 90% increase compared to the same month last year, and achieved a load factor of 77%. The Company’s On Time Performance remains excellent at 91%.
fastjet reports a very positive forward sales position for December with a 99% increase in current ticketed sales and a 30% 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.
fastjet is also pleased to provide an update on the impact of the recent reduction in oil prices on its business.
fastjet does not currently pre-purchase or ‘hedge’ its future fuel price. The Company pays current market rates for its fuel and is therefore realising 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.
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.
Commenting on the above, Ed Winter, Interim Chairman and Chief Executive Officer of fastjet plc, said: “We are very pleased with our trading position in Tanzania. November results are strong as we maximise our market leading position in the country. 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.”