fastjet facing uncertain future as share price crashes | News


Low-cost carrier fastjet is facing an uncertain future after a warning over funding prompted massive falls in its share price.

The African budget airline warned it could go bust unless it received new cash.

The news caused its share price to drop by more than 75 per cent.

fastjet, established by easyJet founder Stelios Haji-Ioannou, flies between several African countries including South Africa, Tanzania and Zimbabwe.

The airline said it is talking to major shareholders about an equity fundraising.

However, if no new funds emerge, fastjet said it may not be “able to continue trading as a going concern”.

“While initial discussions with certain shareholders have been positive, discussions are ongoing and there can be no guarantee of a successful outcome,” the company said in a statement.

While harbouring aspirations to repeat the success of easyJet in Europe, fastjet has never carried more than a million passengers a year.

At present it operates four Embraer 190/5 planes.

The airline lost an average of $50 million a year up until 2016.

However, it has yet to file its 2017 results.

fastjet must publish its annual accounts by this Friday for it to remain listed on the AIM exchange in London.

fastjet has just $3.3 million in cash, it said, of which $1.75 million is held in Zimbabwe and is not readily accessible.

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