Fastjet adds new SA/Zimbabwe route despite financial squeeze

Embattled pan-African low cost carrier fastjet (as it styles itself) has announced on Tuesday it will start flying between Johannesburg, South Africa and Victoria Falls, Zimbabwe, on March 25. The twice-weekly route will be served with an Airbus A319 single-aisle airliner with a capacity of up to 156 passengers. Flight time will be one hour and 35 minutes.

The announcement of the new route came only a day after the airline revealed in London that it “no longer expects to be cash flow positive” during this year. This is the third time fastjet has had to report that it would miss financial forecasts, and the airline – which is listed on London’s AIM – saw its share price fall by 30% as a result, to hit a new low of £0.43.

The low-cost carrier stated on Monday that it has "already taken action to manage its operating costs and overheads and is implementing further measures. … [including] reducing capacity and rationalising the route network to align it with current demand”.

At the end of February it held cash worth more than $20-million, but it has said it may try and raise more to make certain it can finance future growth, as well as give itself more room to manoeuvre. It was only in April last year than the airline raised £50-million from investors, at the time assuring them that it had no plans to raise any further funds.

Regarding the new Johannesburg-Victoria Falls route, “fastjet believes that affordable air travel is key to the continued growth of tourism between Zimbabwe and South Africa, with Victoria Falls being long established as a tourism drawcard to the region,” affirmed company chief commercial officer Richard Bodin in a press release. “Launching this route between Victoria Falls and Johannesburg makes it more affordable for South Africans to visit the area’s many sights and attractions.”

“Prior to announcing these flights to Victoria Falls, fastjet had detailed discussions with South African and Zimbabwean tour operators in order to deliver suitable flight components to include in packaged tour offerings,” he added. “We will rely on continued support from the travel agents and tour operators due to the destinations’ [sic] strong tourism attractions.”

The airline already operates services between Johannesburg and Harare, Zimbabwe (12 times a week) and between Harare and Victoria Falls. It reports that up to 40% of its passengers on all its routes are flying for their first time, because of the carrier’s low fares. The carrier operates in eastern and southern Africa, with Tanzania as its main country of operation.