Fastjet more than doubles full-year net loss for 2016
African low-cost carrier fastjet reported a net loss of $48m for the year ended Dec. 31, 2016, more than doubling the $21.9m loss in the year-ago period. Fastjet has air operator’s certificates in two countries—Tanzania and Zimbabwe—which are facing tough economic conditions and increased competition, as the two airlines themselves battle to right-size to the market. “These financial results reflect not only a difficult market place, but also the overly optimistic expansion plan adopted in early 2015. Since I became CEO on Aug. 1, 2016, we have successfully initiated a stabilization plan to address the immediate challenges. However, although good progress has been made many of the plan’s benefits to reduce our cost base, and match capacity with demand, have naturally taken time to feed through and as such will only be materially realized in 2017,” fastjet CEO Nico Bezuidenhout said. The stabilization plan includes cost cuts, downsizing from Airbus to Embraer aircraft, route rationalization and the relocation of fastjet’s offices from London to Johannesburg.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-06-07/unaligned/fastjet-more-than-doubles-full-year-net-loss-for-2016
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Fastjet more than doubles full-year net loss for 2016
African low-cost carrier fastjet reported a net loss of $48m for the year ended Dec. 31, 2016, more than doubling the $21.9m loss in the year-ago period. Fastjet has air operator’s certificates in two countries—Tanzania and Zimbabwe—which are facing tough economic conditions and increased competition, as the two airlines themselves battle to right-size to the market. “These financial results reflect not only a difficult market place, but also the overly optimistic expansion plan adopted in early 2015. Since I became CEO on Aug. 1, 2016, we have successfully initiated a stabilization plan to address the immediate challenges. However, although good progress has been made many of the plan’s benefits to reduce our cost base, and match capacity with demand, have naturally taken time to feed through and as such will only be materially realized in 2017,” fastjet CEO Nico Bezuidenhout said. The stabilization plan includes cost cuts, downsizing from Airbus to Embraer aircraft, route rationalization and the relocation of fastjet’s offices from London to Johannesburg.<br/>
