Record profit for Mango

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Ockie

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Mango this week announced it achieved record profits for its last financial year to end-March 2014, with a before taxation profit of R56.1-million.

The airline also increased its revenue by 42 percent and grew capacity growth by 25.62 percent. Average load factors rose to 82.35 percent in a year when the airline launched scheduled operations to its first international destination, with twice weekly flights between Johannesburg and Zanzibar.

The airline also launched four weekly frequencies between Johannesburg and George, added two Boeing 737-800 aircraft to its fleet, introduced a mobile app across all major platforms for users to book and pay for flights and manage travel.

“It has been a fantastic year for Mango,” says 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 6th profitable full fiscal out of 7 completed.”

However, he cautions, that the current fiscal indicates 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 adds, “with a new market entrant on the horizon both load factors and revenue across the sector will be under pressure.”

Mango was also recognised at the recent Skytrax World Airline Awards as the Best African Low Cost Carrier.
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http://travel.iafrica.com/flights/959654.html


Pity SAA is not run the same way Mango is then :(
 
Probably because the prices have skyrocketed since 1time went down. But they are still cheaper than all the others
 
It is a fine balance. Charge too much and people are reluctant to support you as much (See SAA), charge too little and you go under (See 1Time). Even though flights are expensive much of the cost is actually airport tax and levies. The Airline makes bitterly little of your money and then have operating costs too boot.
 
JungleBoy said:
I have often wondered why SAA is not profitable. I fly SAA regularly for work purposes and there is very seldom a vacant seat on the flight. :wtf:
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dunkyd said:
Staff overheads. Deadwood and bonuses ?
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This + SAA is forced to fly many unprofitable routes due to political interests for our government. But who knows, if the airline were run efficiently, these routes could very well be profitable also. SAA killed its route between London and Cape Town. What does BAA do? They do a air punch with glee and increase capacity. If that route is not profitable, then why is BAA flying it and making it work?
 
fdaniels said:
It is a fine balance. Charge too much and people are reluctant to support you as much (See SAA), charge too little and you go under (See 1Time). Even though flights are expensive much of the cost is actually airport tax and levies. The Airline makes bitterly little of your money and then have operating costs too boot.
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1Time have themselves to blame in my view. They kept on flying outdated and fuel guzzling aircraft with no plan on updating these. The oil price caught up with them and they could not compete with the airlines flying a modern and fuel efficent fleet. Comair already looking to the future after its purchases of 737-800 next gen aircraft and have ordered 737 MAXX planes which have not even started test flights yet. Hell, the engine that is to be used for its power is still to be flight tested. To run a airline, you need to have foresight, and 1Time lacked this in my opinion
 
They making profit because there has been no competition in the low cost sector till next month. If you look at the cost of tickets prior to 1time demise and a few months after you can clearly see they pushed the norm pricing up by 200-350 per flight.

The new low cost airline, unsurprisingly, has dropped this down by the same margin.. Coincidence? I think not. Watch, I give it 12-18months max if Safair is successful and expands, then Mango and Kulula will be crying foul and the former asking for bail out from gov. Heck instead of preparing for stiff competition with the profit what how much bonuses get paid out and salaries increase (for they board) next year albeit at their detriment
 
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krycor said:
They making profit because there has been no competition in the low cost sector till next month. If you look at the cost of tickets prior to 1time demise and a few months after you can clearly see they pushed the norm pricing up by 200-350 per flight.

The new low cost airline, unsurprisingly, has dropped this down by the same margin.. Coincidence? I think not. Watch, I give it 12-18months max if Safair is successful and expands, then Mango and Kulula will be crying foul and the former asking for bail out from gov. Heck instead of preparing for stiff competition with the profit what how much bonuses get paid out and salaries increase (for they board) next year albeit at their detriment
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Even with 1time around, Mango was turning profits. The article stated that they have made profits in the 6 out of 7 fiscal years of their existance
 
Ockie said:
This + SAA is forced to fly many unprofitable routes due to political interests for our government. But who knows, if the airline were run efficiently, these routes could very well be profitable also. SAA killed its route between London and Cape Town. What does BAA do? They do a air punch with glee and increase capacity. If that route is not profitable, then why is BAA flying it and making it work?
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It's connectivity that's the issue on that route. Heathrow is BA's hub so they can bring in passengers and take them to Cape Town and vice versa. Since BA bought BMI, which was a star alliance member, SAA has lost a lot of connecting flights from Heathrow to CPT.
 
kat06sa said:
It's connectivity that's the issue on that route. Heathrow is BA's hub so they can bring in passengers and take them to Cape Town and vice versa. Since BA bought BMI, which was a star alliance member, SAA has lost a lot of connecting flights from Heathrow to CPT.
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Why does SAA not then look at doing a code share with Easyjet for example? Use them as a feeder network within the UK. Allow customers to book a ticket on Easyjet from lets say Manchester all the way down to Cape Town and even Johannesburg. I realise that LCC's dont really do code share, but I think SAA should start swallowing their pride and kiss some LCC ass in the UK. In the UK and Europe they can use either Easyjet or Ryanair, US they can use Jetblue and Asia look at AirAsia for example?

EDIT: I see now that SAA already is in codeshare with Jetblue in USA
 
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Heaven only knows what the plan is for Saa long haul as I understand almost all them are running at a loss. They're also behind on their growth into Africa. Kenyan and particularly Ethiopian airlines are growing exponentially on the back of their african routes. Really this long awaited turn around plan needs to be released and set in motion or we'll never catch up.
 
kat06sa said:
Heaven only knows what the plan is for Saa long haul as I understand almost all them are running at a loss. They're also behind on their growth into Africa. Kenyan and particularly Ethiopian airlines are growing exponentially on the back of their african routes. Really this long awaited turn around plan needs to be released and set in motion or we'll never catch up.
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The main idea from SAA is to modernise our fleet of wide bodies and to establish a hub in West Africa. The procurement process for the new wide bodies was stopped dead by the minister of transport because they were not happy with localisation of the tender request. With Ebola and just the general lack lustre with which SAA seems to operate, who knows if the west africa hub will ever happen.
 
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