FlySafair is focusing on reconsolidation during turbulent times

Johannesburg-based low-cost carrier FlySafair will focus on reconsolidation this year while operating strategic routes and refining its fleet.

FLYSAFAIR’S EXPANSION

FlySafair has experienced phenomenal growth since 2019, when the airline ramped up its operations.

As well as scaling up its domestic flight schedule the airline also launched flights to Mauritius and Zanzibar in the Indian Ocean.

Then, in October last year, FlySafair launched cross-border flights to four destinations in neighbouring countries: Harare, Victoria Falls, Livingstone, and Maputo.

Next month it will introduce flights between Cape Town and Kruger Mpumalanga International Airport. This is the only new route it will introduce this year.

However, the airline, which operates the largest fleet of Boeing 737 aircraft in Africa has no major plans for fleet or route expansion in 2024.

ECONOMIC CONDITIONS

Operating an airline is a costly endeavour. This is made more difficult when economic conditions are weak.

Aviation growth in South Africa is directly linked to the state of the local economy, which is expected to grow a little over 1% this year.

Therefore, airlines in South Africa should not expect to report much growth in Africa’s aviation market for 2024.

Gordon says he sees 2024 as a year of reconsolidation for FlySafair.

“Economists are pretty lukewarm on economic growth predictions for 2024. They seem to expect GDP growth to be around 1.2%, so that’s not really going to open up a huge growth opportunity. As such, we see 2024 as being a bit of a year of reconsolidation,” FlySafair’s chief marketing officer Kirby Gordon said, per Tourism Update.

COST INTENSIVE INDUSTRY

Operating profitably is difficult for most African airlines due to several reasons.

Regulations, protectionist policies, anti-competitive behaviour, and increasing operating costs impact profitability in the sector.

The ever-increasing cost of jet fuel and the fact that many major costs are based in foreign currency (US Dollars), hinder growth in the sector.

“It is ridiculously expensive to fly these days. Airlines are struggling at the moment. Fuel is ridiculously expensive.” Gordon said at a press briefing.

CHARTING THE WAY FORWARD

Given the tough economic climate for airlines and because consumers are watching their pennies very closely, airlines must ensure they offer value to customers.

FlySafair will stick to its low-cost business model and will offer value by allowing customers to select the options they need.

Passengers will continue to be able to pay for only the services they require when flying with the budget carrier.

FLYSAFAIR TO WORK WITH TRAVEL AGENTS

The airline will continue to work with travel agents, whom it sees as valued partners.

FlySafair conducted research with its passengers. The results showed that increasing numbers of passengers use travel agents to book flights.

Travel agents are able to find the best fit (product) for customers and can manage complexities such as refunds and flight amendments.

They are also best suited to providing customers with information on visas and other changing requirements.   

SUSTAINABILITY MEASURES

While most airlines are moving towards becoming more sustainable in their operations, the cost and availability of cleaner aviation fuels is a challenge in South Africa.

As fuel represents almost 55 percent of FlySafair’s operating costs, the company is eager to reduce its fuel bill wherever possible.

FlySafair is making a concerted effort to reduce its fuel bill ensuring its planes are lighter and making the most efficient use of airspace during flights.

The company has an entire team dedicated to improving operational efficiencies, aircraft performance, and reducing costs.

Thus, FlySafair intends to keep offering budget fares while reducing carbon emissions.