FastJet's (FJET) new liveried planes aren't even in the air yet, so a half-year update from sub-Saharan Africa's first budget airline is not about the numbers. Its first crucial test comes next month when the first of its Airbus A319s takes to the skies from Dar es Salaam, Tanzania, then Nairobi, Kenya, soon after.
In fact, the first six months of 2012 include just one day of income from continuing activities. Given management, consultancy and administration fees, and the cost of buying Lonrho's aviation business, it's little wonder FastJet lost over $2.1m (£1.3m) during the period. Still, in July and August the Fly540 airline flew over 120,000 passengers, 37 per cent more than the year before. Admittedly, it didn't make quite as much money as expected and there are numerous legacy issues. But changes to routes, fares and frequencies are having a positive impact and FastJet has yet to tap the vast potential in a continent awash with oil money, a rapidly expanding population and a terrible transport system.
In fact, FastJet's fleet should grow to around 15 planes in 2013, each one capable of taking 250,000 passengers a year. According to Airbus, passenger traffic growth in Africa will average 5.7 per cent between 2010 and 2030 compared with just 4.8 per cent globally.
FASTJET (FJET) | ||||
|---|---|---|---|---|
| ORD PRICE: | 3.93p | MARKET VALUE: | £67.5m | |
| TOUCH: | 3.85-4p | 12-MONTH HIGH: | 8.63p | Low: 0.8p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 6.7¢* | NET CASH: | $4.2m** | |
| Half-year to 30 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | nil | -0.41 | -0.62 | nil |
| 2012 | 0.35 | -2.11 | -0.69 | nil |
| % change | - | - | - | - |
*Includes intangible assets of $80.8m, or 4.7¢ a share **Excludes $8.5m (£5.5m) placing post half year-end | ||||
