Johannesburg - Low-cost
carrier FlySafair says it made a profit in 2016, the carrier’s second year of
operations.
This, it notes
in a statement issued on Tuesday, comes despite a tough trading environment,
with low economic growth and an over-supply of seats on domestic routes.
During 2016, it
added three new aircraft to its operating fleet, bringing it to a total of 9 aircraft. In August, the airline also launched new routes from Lanseria to Cape
Town and George.
“There’s no
doubt that the market is heavily traded at the moment with an excess supply of
seats on domestic routes,” says FlySafair CEO Elmar Conradie. “Fares are
determined by a market and are very much at the mercy of the powers of supply
and demand. If supply grows more than demand, prices will fall.”
Read also: 'FlySafair is not for sale'
Statistics
published by Airports Company South Africa (ACSA) indicate that domestic
passenger numbers grew by approximately 6 percent year-on-year in 2016, which
is positive, but was unfortunately outstripped by the supply of seats, which is
said to have grown by as much as 12 percent, it notes.
“Now, more than
ever, it’s essential that carriers focus on keeping their cost per seat as low
as possible,” says Conradie.
“It’s essential
that we drive efficiencies across all aspects of our business to remain
competitive.”
By the end of
2016, the company had flown more than 2.6 million passengers and maintained an
on-time performance record of 95.8 percent.
For 2017, FlySafair
is looking at a year of consolidation. “We’re looking at a few possible
expansion plans, but the aim for this year is to slow the growth a little and
work on making small differences that will improve our cost efficiencies in
order to keep fares as low as possible.”
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