Monday , March 8 2021

Fastjet shares fell 6% due to new warnings



Fastjet, the African airline budget, has warned that it could collapse unless investors give money at the end of the month.

The airline issued a warning in October saying that it almost collapsed unless an injection of cash was immediately given.

In a statement, Fastjet said: "The company continues to review current cash requirements and can continue to operate during November due to several increases in trade, cash generation and internal efficiency."

"The main space available allows the company further time to continue discussions with major shareholders and creditors," he added.


"While discussions to date with certain shareholders and creditors are positive, discussions are ongoing and there are no guarantees of successful results."

"If the company cannot raise equity funds and / or reach an agreement with its main creditor, the group will not be able to continue trading as a business continuity."

After the news, shares in the group fell 6%.

Budget airlines were founded by founder EasyJet (), Sir Stelios Haji-Ioannou.

This group has a cash balance of $ 3.9 million (£ 3 million), however, £ 3 million was held in Zimbabwe and has limited access.

The stock plunged 70% in June on a previous financial warning after saying it was "risky not being able to continue trading as continuity".

The airline was first launched in Tanzania in 2012 but has grown in South Africa, Zimbabwe, Zambia, Mozambique, Uganda, Malawi and Kenya.

The stock is currently down 4.11% at 1.68 (1259GMT).


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