Colin Child, fastjet PLC LON:FJET Executive Chairman, 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.
“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.
“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”.
fastjet, the low-cost African airline, announces its audited final results for the year ended 31 December 2015.
The table below shows the financial performance of the fastjet Group continuing activities excluding the legacy Fly 540 Angola CGU.
2015 2014
US$ US$
---------------------------------- -------- --------
Revenue 65.1m 53.8m
Operating loss from continuing
activities (37.9)m (43.9)m
Loss from continuing activities
after tax (36.2)m (44.4)m
Profit/(loss) from discontinuing
activities after tax 19.4m (14.1)m
Loss for the year after
tax (16.9)m (58.5)m
Loss per share from continuing
activities (0.71) (3.38)
Cash balance at year end 28.9m 1.4m
---------------------------------- -------- --------
Financial highlights
-- Revenue on continuing activities up 21% -- Negative cash flow from operating activities US$(36.9m) (2014: US$(27.2m)) -- Equity fund raise in April 2015 of US$75m before expenses
Operational highlights
-- Passenger numbers up 32% to 787,771 -- fastjet Tanzania load factor down 6.6 percentage points to 66.7% -- fastjet Tanzania aircraft utilisation up 10% to 11.2 hours during peak months -- Named Africa's Leading Low-Cost Airline 2016 at the World Travel Awards
Strategic highlights
-- fastjet Zimbabwe commenced services -- Flights from Tanzania to Kenya approved
— Further rationalisation of legacy operatives including disposal of Fly 540 Ghana and Fly 540 Angola classified as abandoned
-- Rationalisation of route network progressing well -- Search for new Chief Executive Officer well advanced
fastjet’s report and accounts for the year ended 31 December 2015 (“2015 Report and Accounts”), notice of the Annual General Meeting (“AGM”) and the form of proxy, are expected to be posted to shareholders shortly.
A copy of the 2015 Report and Accounts will be available to view and download shortly from the Company’s website: www.fastjet.com
