FASTJET AIMS TO CARRY 600,000 PASSENGERS THIS YEAR

The Pan-African carrier, Fastjet has announced plans to carry about 600,000 passengers this year, with more flights on domestic services in Tanzania together with new routes to Kenya, Malawi, Zimbabwe and Uganda and possible bases in Kenya, South Africa and Zambia.

“Although the yield is at a level which could provide a profitable operation, resources are not being utilized fully,” Chief Executive Officer Ed Winter said in a statement. “Higher frequencies and more international routes are being progressively introduced to increase aircraft utilization.”

Launched in 2012, fastjet has seen consistently strong passenger numbers and load factors over the past year.

FastJet Plc said it will commence twice-weekly flights from its operating base Dar es Salaam to Harare from August 5th, adding a third international destination after South Africa and Zambia.

The London-based company will be providing the only direct scheduled service on the route.

FastJet said in April it would raise 15 million pounds ($ 25 million) from share sales to fund growth, with EasyJet Plc (EZJ) founder Stelios Haji-Ioannou injecting cash to get 10 percent of the business. Capacity reached 60,000 seats in May, up 11 percent from a year earlier, though yields are under pressure from price cuts at Air Tanzania and Precision Air Services Ltd.

FastJet had an average load factor of 72 percent for the year, meaning its planes flew almost three-quarters full. Some 95 percent of planes are operated to schedule, an unusual display of reliability in Africa, where flights can commonly be hours late or be scrapped altogether at the last minute.

That’s allowing the carrier to apply a standard revenue-management system for low-cost carriers, with early bookers paying $ 20 plus tax one way and customers buying tickets on the day charged more than $ 200, according to Ed Winter.