Fastjet’s sales up but its Fly 540 misadventure hits bottom line

 
Charlotte Henry
Follow Charlotte
Fastjet is looking to expand its fleet after winding down Fly 540 in Ghana and Angola
AFRICAN budget airline Fastjet has widened its pre-tax loss for 2014, despite doubling its revenue during the year.

Losses including the discontinued businesses of Fly 540 in Angola and Ghana were up to $72m (£46m). Operating loss before exceptionals was $30.7m.

Fastjet reported that its core Tanzania operation had an 106 per cent increase in full year revenues to $53.8m. This was helped by an 85 per cent improvement in aircraft utilisation, and a 62 per cent increase in seats flown, critical in the low cost airline model.

The carrier, which has received backing from Easyjet founder Stelios Haji-Ioannou, is now looking to expand into Zimbabwe and Zambia.

Chief executive Ed Winter said: “Strong underlying traffic growth during the year continues to demonstrate that Fastjet's low-cost airline model works in the African market.”

Shares in Fastjet on Aim, closed 0.86 per cent up yesterday at 115p.

Related articles