Mango to keep fares flat despite rising fuel costs
Low-cost airline Mango said on Monday that it would not increase its fares, despite an escalation in the fuel price this year.
The group noted that crude prices were again approaching $80 a barrel.
CEO Nico Bezuidenhout said: “It has been a challenging year for consumers, and as the oil price continues to climb, a fuel price increase is becoming highly likely before the festive season. Should this occur, Mango will absorb these increases and not up fares due to fuel costs over the holiday period this year.”
Mango was launched in October 2006 as South Africa’s first globally benchmarked low-cost carrier.
The group highlighted that the barrel price of crude oil was at near double its lowest floor price late last year. And while still well below the crisis range that fuel prices reached recently, currency fluctuations and the global financial crisis had negatively affected airfares. “Low-cost airlines, however, are better placed to manage economic turbulence,” said Bezuidenhout.
“Beyond a business model that dictates operational efficiencies, new generation aircraft, such as the Boeing 737-800 aircraft Mango operates, allows for greater fuel efficiency, ultimately making air travel more affordable,” the chief executive said.
“December holiday bookings are looking good,” said Bezuidenhout, noting that he expected a solid festive season. “While we may still be in the midst of a recession, South Africans are still travelling. This year, though, it is evident that holidays are on average slightly shorter than last year,” he concluded.—I-Net Bridge