Low-cost African airline Fastjet has announced that its revenues for the first 10 months of 2019 stood at $34.1 million, up from the $28.3 million experienced in the same period last year.
Fastjet has suspended its flight operations in Mozambique due to ongoing supply and demand challenges resulting in continued losses of $2.4 million in H1 2019, down from the $2.7 million posted in H1 2018
While the group's FedAir operation remains resilient and is expected to be profitable for the year, this has been off-set by the continued volatility and uncertainty in the Zimbabwean market.
Fastjet Zimbabwe has increased its year on year revenue despite the difficult trading conditions following the introduction of a new currency which effectively devalued the existing currency by up to 15 times its previous value at official rates and has pushed inflation rates to above 200%.
The group has said that one of the E190 aircraft which used to be leased from GECAS has yet to be deregistered by the Tanzanian authorities.
Deregistration of the aircraft was due to be completed by 28 February 2019 and is the last remaining condition for the termination of the head lease agreement with GECAS but has not yet been satisfied.
Fastjet Airlines Ltd applied for the deregistration of the E190 with the Tanzanian authorities who have yet to deregister the aircraft. In our opinion the Group has done everything necessary to allow de-registration of the aircraft.
Mark Hurst, Fastjet chief executive officer, commented: "The Disposal, if agreed, approved and implemented, would be expected to de-risk the significant uncertainty and cash drain that shareholders have historically suffered and allow the group to continue operating under a more stablised and simpler business model.
"This revised strategy allows the Group the opportunity to create a single Fastjet brand throughout key markets in Africa, leverage its key intellectual property of its brand and airline management solutions and invest in viable, already-established airlines where it can."