fastjet revenues get Tanzania boost

African budget airline fastjet (LON:FJET) saw a big increase in revenues in June as more passengers used its routes in Tanzania.

Passenger sales were a record £2.2mln, a 22% rise on May. Most of the higher revenues came from a 10% rise in load factor in June to 78%, from 68% in May, with average fares little changed, fastjet said.

Load factor is the average percentage of seats sold on each operating aircraft and was helped by what the airline said was a change in competitive conditions in Tanzania. Turnover was also boosted by the reintroduction of the Kilimanjaro to Zanzibar route.

The rise in traffic meant the Tanzania business carried its 200,000th passenger in June and fastjet expects to boost this by least 28,000 by the end of July.

The imminent introduction of its flights from Tanzania to South Africa will also boost revenues, it added.

Ed Winter, chairman and chief executive officer of fastjet, said: "I am delighted with our continued growth in Tanzania. I think we can justifiably state that we are becoming the airline of choice and are setting the standard by which other airlines should be judged.

“The introduction of international flights is the next big step in our development and we are all focused on getting those routes on sale as soon as possible. Having received the required licences, we are now just working with the authorities in South Africa to get the landing slots and other final arrangements in place.”