African budget carrier Fastjet today announced an operating loss of $47.6 million last year.
This came despite average revenue per passenger rising from $46.30 to $95.20.
Group revenue increased by 154% from $21 million to $53.4 million.
The airline, based in Tanzania, yesterday disposed of Fly540 Kenya, part of a number of operations inherited from Lonrho Aviation.
These businesses were described as “disappointing,” having not performed as expected. Fly540 operations in Ghana and Angola remain suspended.
Fastjet raised $24.8 million in additional funds in April to support the carrier until it becomes cash flow positive “with a level of contingency to cover the unpredictable timing of African government approvals”.
EasyJet founder Sir Stelios Haji-Ioannou invested $1.6 million in the share placing and also agreed to terminate a management fee in exchange for $2.5 million in shares.
The airline plans new bases in Zambia, Kenya and South Africa having started its first international route between Tanzania and South Africa in 2013.
Chief executive Ed Winter said: “2013 was a very significant year for fastjet with the company proving the low cost airline model in Tanzania works.
“In the first half of 2014 we have built upon that foundation and continued to grow, moving towards our vision of becoming a true pan African low cost airline.”
He added: “Our recent succesful fundraise moves us even closer to that goal, and I am delighted with the encouraging response we received from the market generally, and Fastjet shareholders specifically, demonstrating support for our strategy and vision.
“The disposal of fly540 Kenya, which was announced yesterday, is a hugely significant step that allows us to fully pursue our expansion in East Africa.
“Our experience to date confirms our long-held view that people across Africa are embracing the opportunities offered by Fastjet’s reliable, safe and great value air travel.
“The combination of the management team’s experience in Africa and Fastjet’s stronger financial position means that we are now ready to continue our expansion and leverage our first mover advantage to the benefit of passengers and shareholders alike.”