No sunny skies for SA’s aviation industry in 2017
Low-cost carrier Mango said on Tuesday it expected 2017 to be challenging for the South African aviation industry, with the airline expected to focus on cost control and improving its market share. "Little positive movement in traveller volumes, price competition and an expected rise in commodity prices will add growing pressure on already squeezed airline margins," Mango acting CEO Nic Vlok said in a statement. SA’s low economic growth rate and forecasts that crude oil prices were expected to recover from recent lows were expected to put pressure on domestic carriers. These factors also required increased operational efficiencies, productivity growth and more efficient aircraft, Vlok said. Mango’s results for the year-ended March 2016 indicated a R37m loss despite a 21% increase in passengers and 14% lower fuel costs during the period. Mango expected to perform well in 2017 despite predictions of less than 1% sustainable growth in the industry, it said, and was being "positive and ...
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