Fastjet rises on strong 2018 revenue growth

Africa-based low-cost carrier Fastjet (LON:FJET) has announced a 166% increase in revenues for year ended 31st December, driven by rising customer numbers in Zimbabwe and Mozambique. The company booked an increased loss from continuing operations for the year, largely due to one off impairments linked with a capital raise carried out in December.

CEO Nico Bezuidenhout commented: “In 2018, we took significant and decisive action to right-size the Group and ensure the business has a solid platform on which to build future growth. Whilst these cost-cutting measures were at times painful, our newly-sized operations provide fastjet with a materially enhanced strategic position to pursue the growth opportunities on offer on the continent.

Despite the impact of cyclones in Mozambique at the start of the current year and continued fuel protests and currency volatility in Zimbabwe, fastjet is making progress and expects to generate a marginal underlying operating profit for 2019, with further route expansion planned for Zimbabwe in the second half of the coming year, as well as a brand entry into South Africa in 2020“.

Fastjet’s share price rose by 5.09% to 1.50p (as of 10:45 BST).