fastjet update reflects period of significant change

fastjet (LON:FJET), the Africa-focused low-cost airline, expects to report revenues of around US$32mln for the 18 months to December 31, it revealed in a trading update.

The period under review, particularly the latter part, saw major changes as the Fly540 operation was acquired from Lonrho and the group made its first flights from Tanzania under the new brand.

For a start-up of this ambitious nature losses are expected – but fastjet reckons they will be no more than US$31mln before any goodwill write-downs. The company’s net assets are estimated to be US$80mln.

Chief executive Ed Winter said: "These results cover an extended 18 month reporting period up until 31 December 2013 during which the company has rapidly grown its operations in Africa in mainly Angola and Tanzania.

“We have expanded the company’s route network significantly over this period and brought on a larger fleet to service the increased passenger loads we have experienced during this time of growth."

The company’s full results statement is expected next month.