United Kingdom-based budget airline Fastjet has suspended domestic flights in Mozambique, citing viability challenges as a result of rising competition.
The airline said in a statement on Wednesday that it would stop domestic flights in Mozambique with effect from Saturday.
The suspension includes the flights between Maputo and Tete as well as between Beira and Quelimane under Fastjet’s code-sharing arrangement with Mozambique Airlines.
The airline cited declining revenue from its Mozambique operations and the competition from Ethiopian Airlines, whose subsidiary Ethiopian Mozambique Airlines is now operating flights on several of the country’s main domestic routes.
It revealed that the competition has seen revenue from its Mozambique operations declining to US$1.9 million in the first half of 2019 from US$4.2 million during the corresponding period last year.
“The detrimental financial impact of ongoing supply and demand challenges means that suspending our Mozambique operations is the right course of action at this time,” Fastjet interim chief executive Mark Hurst said.
He said the airline would resume Mozambique flights “when the general demand for air transport in the country increases sufficiently in comparison with the capacity supplied to allow long term financial viability”.
CM/jn/APA