fastjet 2015 outlook: fleet expands and new affiliates launch but profitability remains challenging

African LCC group fastjet is aiming to finally pursue fleet expansion and launch affiliates in 2015. The group ends 2014 with a fleet of only three A319s - the same number of aircraft it operated at the end of 2012 and 2013 - after repeatedly delaying expansion and the launch of new affiliates.

The Tanzania-based group could potentially triple its fleet in 2015 as a second affiliate is launched in Zambia and potentially a third base is also opened, most likely in Uganda. But such growth is far from a certainty and it seems unlikely the long anticipated launch of affiliates in Kenya and South Africa will occur in 2015.

fastjet has accumulated approximately USD200 million in losses since being established in 2012. It is confident lower oil prices and the suspension of unprofitable operations in Angola and Ghana will significantly improve its financial position in 2015.

Protectionist hurdles - frequently of little practical value - remain and competition meanwhile is intensifying.