Fastjet PLC Suspension of flight operations in Mozambique (5203Q)
21 Octubre 2019 - 2:40AM
UK Regulatory
TIDMFJET
RNS Number : 5203Q
Fastjet PLC
21 October 2019
21 October 2019
fastjet Plc
("fastjet" the "Company" and together with its subsidiaries the
"Group")
Suspension of flight operations in Mozambique
fastjet plc announces that from midnight on Saturday 26 October
2019, fastjet Mozambique will be suspending its flight operations
in Mozambique, including flights under its code-share arrangements
with LAM Mozambique Airlines.
As detailed in fastjet's 2019 Interim Results announcement and
April Trading Update, competition in Mozambique began to intensify
at the end of 2018 with the market entry of Ethiopian Airlines as a
domestic carrier. This increase in aircraft and capacity supply,
coupled with two category 5 tropical cyclones at the beginning of
2019 which suppressed passenger demand, led fastjet to scale back
frequency on routes and to reduce overall capacity in Mozambique.
As a result, fastjet Mozambique reported significantly reduced
revenue of US$1.9m in the first half of 2019 (H1 2018: US$4.2m) out
of total revenue for the Group of US$19.7m.
Following continued losses (US$2.4m in the first half of 2019)
and the ongoing oversupply of available seats by other carriers,
fastjet has decided to suspend all flight operations in Mozambique.
It is expected that costs related to the suspension of flight
operations in Mozambique including refunds will amount to around
$150k. However, fastjet remains committed to returning to
Mozambique once demand for air travel in the country increases
sufficiently compared to capacity supplied.
The suspension of flights in Mozambique does not affect any of
the operations of fastjet Zimbabwe, the leading airline brand in
Zimbabwe, which continues to operate between Harare, Johannesburg,
Bulawayo and Victoria Falls.
Cash balances as at 30 September amounted to US$2.8 million.
Mark Hurst, fastjet Interim Chief Executive Officer, said:
"The detrimental financial impact of ongoing supply and demand
challenges means that suspending our Mozambique operations is the
right course of action at this time. However, we remain committed
to Mozambique, will be monitoring the market environment very
closely and expect to return there as and when the situation
improves."
This announcement is released by fastjet plc and contains inside
information for the purposes of Article 7 of the Market Abuse
Regulation (EU) 596/2014 (MAR), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
For the purposes of MAR and Article 2 of Commission Implementing
Regulation (EU) 2016/1055, this announcement is being made on
behalf of the Company by Kris Jaganah, Chief Financial Officer.
For more information, please contact:
fastjet Plc Tel: +27 (0) 10 070 5151
Mark Hurst, Group Interim Chief
Executive Officer
Kris Jaganah, Group Chief Financial
Officer
UK media - Citigate Dewe Rogerson Tel: +44 (0) 20 7638 9571
Angharad Couch
Toby Moore
Nick Hayns
For investor enquiries please contact:
Liberum Capital Limited - Nominated Tel: +44 (0) 20 3100 2222
Adviser and Broker
Andrew Godber
Clayton Bush
James Greenwood
William Hall
NOTES TO EDITORS
About fastjet:
fastjet is a multi-award-winning African value airline that
began flight operations in 2012. Its awards include, Leading
African Low-Cost Carrier World Travel Awards 2016, 2017, 2018 and
2019, and Skytrax World Airline Awards Best Low-Cost Airline in
Africa 2017. Today, fastjet connects Zimbabwe by flying between
Harare and Victoria Falls, Harare and Bulawayo. It also offers
flights from Harare and Victoria Falls to Johannesburg in South
Africa.
Since commencing operations fastjet has flown over 3 million
passengers and has established itself as a punctual, reliable, and
affordable low-cost carrier.
fastjet Plc is quoted on the London Stock Exchange's AIM
Market.
For more information see www.fastjet.com
This information is provided by RNS, the news service of the
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contact rns@lseg.com or visit www.rns.com.
END
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