Low-cost airlines to benefit from economic crisis - CNBC Africa

Low-cost airlines to benefit from economic crisis

Southern Africa

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Mango Airlines. PHOTO: tuktuk

This is because consumers migrate from full service high-cost airlines to low-cost airlines.

“This year thus far we’ve had load factors well in excess of 83 per cent where global average is typically 80 per cent. Demand for our services is great so when the economy is tough our business does well,” said Bezuidenhout.

He adds that although falling oil prices will reduce airline carriers fuel bills, it will not directly translate to cheaper tickets.

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“In South Africa we’ve got a lag effect because fuel price is regulated and the basic fuel price is set on a monthly basis. We can expect these short term gains in the oil price to start reflecting in the basic fuel price in South Africa in the next 30-45 days.”


Bezuidenhout remains optimistic about the coming years as he says Mango has managed to be profitable for six out of seven full fiscals.

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Moving forward Mango looks to increase routes at cheaper costs in the SADC region.

“About 12 months ago we launched our first scheduled operation to Zanzibaar. Low-cost air travel and affordable air travel is a great economic enabler that could serve a great benefit to African economies especially given the poor state of road and rail infrastructure,” he said.