Belfast Telegraph

FastJet shares collapse as airline warns over future

Shares were down more than 76% in afternoon trade.

Shares in FastJet crumbled on Wednesday after the struggling budget airline warned that it is at risk of going bust unless it secures emergency funding.

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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”.

Shares were down more than 76% in afternoon trade.

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 December 31 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