Low-cost carrier FlySafair will focus on implementing changes in the business to improve cost efficiencies and keep its fares as low as possible.
The company on Tuesday said it had made a profit in 2016 – its second year of operations – despite a tough trading environment with low economic growth and an oversupply of seats on domestic routes.
“There’s no doubt that the market is heavily traded at the moment with an excess supply of seats on domestic routes. 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,” said FlySafair CEO Elmar Conradie.
FlySafair pointed out that statistics provided by Airports Company South Africa showed a 6% year-on-year increase in domestic passenger numbers in 2016, but a 12% year-on-year increase in the supply of seats.
“Now, more than ever, it’s essential that carriers focus on keeping their cost per seat as low as possible. It’s essential that we drive efficiencies across all aspects of our business in order to remain competitive,” said Conradie.
During 2016, FlySafair added three new aircraft to its operating fleet, bringing it to a total of nine aircraft. In August, the airline also launched new routes from Lanseria to Cape Town and George. The airline still managed to achieve a profit after these major growth investments.