Mango has reported a nett profit of R40 million and a before-tax profit of R56.1 million for the fiscal ending March 31, 2014.
This represents the airline’s highest-ever profit, and compares to a before-tax profit of R36.9 million for the previous financial year.
According to the airline, revenue increased by 42% as a consequence of capacity growth of 25.62% and an average load factor hike to 82.35% along with tightened yield management.
During the period in review, the Airports Company South Africa reported a market decline of 0.4% domestically.
“It has been a fantastic year for Mango,” said CEO, Nico Bezuidenhout. “The narrative of our business case, as set down in 2006, continues to bear fruit as Mango achieves its second successive profitable fiscal and sixth profitable full fiscal out of seven completed.”
However, Bezuidenhout cautioned that the current fiscal indicated an economic hangover as a consequence of ongoing fuel price and currency fluctuations. “This year will see greater challenges and increased pressure on margins and,” he added, “with a new market entrant on the horizon both load factors and revenue across the sector will be under pressure.”
During the period in review, Mango launched scheduled operations to its first international destination with twice-weekly flights between Johannesburg and Zanzibar. The airline also launched three weekly frequencies between Johannesburg and George with a fourth added early 2014 and added two Boeing 737-800 aircraft to its fleet.
