Fastjet pleased with October 2014 traffic

Africa-based discount airline Fastjet (LON:FJET) carried almost 4% more passengers in October compared to the previous month as demand picked up for its new services to Harare and Entebbe.

The airline carried a total of 59,830 passengers at a load factor of 74%, compared to just shy of 57,800 in September at a similar load factor and around 32,300 in October last year.

Some 95% of flights this October arrived on time, the airline said.

Ed Winter, interim chairman and chief executive added: "I am delighted to see such strong total passenger numbers and high load factor for what is traditionally a low travel month.

“Passenger numbers grew month on month as we added additional flights to Entebbe and recorded strong passenger increases on our flights to Harare.”

Fastjet has carried more than 513,000 passengers over the past twelve months, a 79% increase on the comparable period.

Sanlam added that boosted by flights to Entebbe, the results were positive and continue to indicate the low cost carrier model works in Tanzania and can be replicated across Africa.

Fastjet can benefit from a first mover advantage and the growth in middle class travel in Africa but sentiment is being affected by its losses and requirement for more financing, the broker said.