Thursday 20 September 2018

FastJet warns over future as it seeks lifeline

The loss-making airline offers budget flights across a number of African countries.

FastJet is in crunch talks aimed at raising fresh funding (PA)
FastJet is in crunch talks aimed at raising fresh funding (PA)

By Ravender Sembhy, Press Association City Editor

Struggling budget airline FastJet has warned that it is at risk of going bust unless emergency talks with shareholders result in fresh funding.

The loss-making airline, which offers budget flights across a number of African countries, said it is in “active discussions” with major shareholders regarding a potential equity fundraising.

However, in the same breath, it added that, in the absence of fresh cash, “the group is at risk of not being able to continue trading as a going concern”.

FastJet added: “Whilst initial discussions with certain shareholders have been positive, discussions are ongoing and there can be no guarantee of a successful outcome.

“It is expected that any equity fundraise will be concluded in conjunction with the announcement of the company’s annual results for the year ended 31 December 2017.”

The group said if the fundraising is not successful, it will result in FastJet being suspended from trading.

FastJet warned that it has a cash balance of just 3.3 million US dollars, of which 1.75 million US dollars is restricted cash in Zimbabwe.

Over the past two years FastJet has been reducing costs as part of a stabilisation plan.

Press Association

Today's news headlines, directly to your inbox every morning.

Editors Choice

Also in World News