Fastjet seats fill up as add-on fees rack up

Fastjet’s (LON:FJET) low-cost aircraft continue to fill up with passengers as it unveiled another month of encouraging passenger statistics.

In October, it carried a total of 33,778 passengers in Tanzania, with the planes 70% full on average despite a 14% increase in capacity.

The company also welcomed increased income from fees for baggage, ticket changes, and in-flight sales, known as ancillary revenues, which now account for 10% of total revenues, up from 7%.

Fastjet expects revenues to grow significantly after the recent launch of its first international route between Dar es Salaam and Johannesburg. Cargo is now being transported on that route, complementing the existing domestic cargo service.

Ed Winter, the airline’s interim chairman and chief executive, said: “We are very pleased to have achieved an average load factor of 70% across the network in October, a traditionally weak month, and the month we launched flights to Johannesburg from Dar es Salaam.

“Ancillary Services represent an important part of the low-cost model and it is great to see this revenue stream now representing 10% of total passenger revenue.”

He continued: “Our in-flight retail contract is performing very well and work is currently underway to offer a wider selection of services such as accommodation, car hire and insurance which will support this revenue growth.”

Winter added that cash in the bank and its equity draw-down facility provide the company with enough working capital for “our near term requirements as we continue to seek to address our longer term funding requirements for further expansion next year”.