Election campaign impacts on Fastjet’s loadfactors in Tanzania

FASTJET CARRIES MORE PASSENGERS IN OCTOBER THOUGH LOADFACTORS FELL

(Posted 08th November 2015)

Inspite of a 23 percent rise in numbers compared to 2014 – the airline uplifted a total of 73.758 passengers – did the loadfactor across the fleet fall by 11 percent, attributed to a sharply reduced level of travel in the final phase of the Tanzanian election campaign, on voting day and the days until the results were declared.

Punctuality remained above 90 percent inspite of some very adverse weather conditions across Tanzania, where torrential rains even caused floods in several parts of the country.

The most significant event for Fastjet PLC though was the launch of the airline’s second operation in Zimbabwe, where after basing and registering an Airbus A319 permission was given by the Zimbabwe Civil Aviation Authority to commence operations. The first destination in Zimbabwe was Victoria Falls, which is presently being served three times a week but announcements are imminent it is understood for additional designations, opening the airways for more routes, including into the region.

The airline, in an understandable move, also announced that they will cease to provide monthly updates on passenger numbers, on time performance and load factors as additional operations come on line – Zambia is expected to launch next – to keep these crucial data under wraps until the annual shareholders report must be published. This, according to information received, will prevent competitors from gaining operational knowledge while they themselves do not publish such monthly data.

Fastjet’s CEO Ed Winter commented on the monthly results as follows: ‘The load factor this month has been significantly affected by a change in market demand in Tanzania due to the Presidential elections. We expected a downturn in the few days leading to the election and on the day itself. However, due to the unusually competitive nature of this year’s elections, people tended to suspend travel plans until the inauguration. There have been no significant reports of civil unrest in the country and I am pleased to report that bookings are beginning to return to expected levels. I am also delighted with the successful launch of Fastjet Zimbabwe. We have clearly captured the imagination of the Zimbabwean market having sold over 2,600 seats in a few short weeks on our first route which links Harare with Victoria Falls. We are working hard on growing the network to and from Zimbabwe and our applications to operate to various regional countries have already been sent by the Civil Aviation Authority of Zimbabwe’.

Year on year did the accumulated passenger numbers up to October rise by 47 percent from 539.205 in 2014 to 791.758 in 2015, another sign that the new routes launched since last year were accepted by the market. Fastjet presently, besides serving three domestic destinations out of Dar es Salaam, also flies to Entebbe, Lilongwe, Johannesburg, Lusaka and Harare.