Fastjet halts Mozambique operations as demand slumps

Fastjet Group is to suspend flights in Mozambique after mounting losses resulting from insufficient demand, which it partly attributes to tougher competition. Fastjet Group had been concentrating on its operations in Mozambique, South Africa and Zimbabwe after its withdrawal from Tanzania. But Fastjet Mozambique – which started up in Nov 2017 – has faced competition from Ethiopian Airlines, which recently established itself in the country's domestic market. Fastjet Mozambique has been using an Embraer ERJ-145 but says it has been forced to "scale down" its route network. Over the first half of this year Fastjet Mozambique recorded "significantly reduced" revenues of US$1.9m – down from $4.2m – and relatively heavy operating losses of $2.4m. <br/>