Fastjet has delayed the start of operations in Zimbabwe and Zambia to mid-November and early December respectively, as the airline has downgraded its financial forecast for the year 2015. The airline had hoped to launch operations earlier this year.

“The nett effect of the delays in the opening of new routes has resulted in all of the start-up costs for Zimbabwe and Zambia plus the costs of doubling the fastjet fleet being incurred in 2015, with little of the corresponding income now expected to flow before 2016,” said CEO Ed Winter.

Weak African currencies are also expected to impact on Fastjet’s results. The Tanzanian shilling exchange rate has deteriorated against the US dollar, with a sharp decline starting in April. “Although this did not initially have a significant effect on our revenues, a combination of this and a tightening in government spending in the months ahead of the elections scheduled for October 25 have caused a significant downturn in our revenue per passenger,” Winter said.  

Fastjet’s interim results for the six months ended June 30 showed significant improvements, including revenues that were up for the first six months of the year from US$19 million (R262,37m) to US$31,5 million (R435m), as passenger numbers grew by 56%.

However weak African currencies and the delay of route development resulted in the board downgrading its forecast for the full year 2015. However, it is confident the airline will meet its expectations for 2016.