FJET.L Share News (FJET)

African low-cost airline Fastjet booked a wider interim loss after start-up losses associated with launching Fastjet Tanzania, but said it is confident in the potential of its long-term strategy.The London-listed group reported an operating loss before exceptionals of US$24.9m, including $13.3m of trading losses in the Tanzanian operation, in the six months ended June 30th compared to a loss of $2.1m a year earlier. Its Tanzanian operation reported an earnings before interest and tax (EBIT) loss of $9.1m in the first quarter and $4.2m in the second quarter, a 54% reduction quarter on quarter."These interim results include start-up losses associated with launching Fastjet Tanzania. Of particular note was that losses more than halved in Q2 compared to Q1. Our performance is expected to considerably improve in the second half of 2013," the group said in a trading update.Fastjet Tanzania achieved $81 revenue per passenger in June, almost double from January's rate of $46. "As our planned network expansion progresses and scale covers fixed operating costs, we fully expect fastjet Tanzania to become profitable," it said.Last week the airline was forced to postpone its inaugural international flight from Dar es Salaam in Tanzania to Johannesburg due to "unexpected administrative delays". "Once Tanzania is fully established and profitable we will turn our attention again to the South African market. Regional routes from South Africa to Sub-Saharan destinations lack effective competition and are both underserved and overpriced and ready for an alternative," it explained."Based on our success in Tanzania to date, fastjet is confident in the potential of its long-term strategy to become the pan-African low cost airline of choice." CJ