Fastjet warns of potential collapse unless flights resume
By Iain Gilbert
Date: Friday 03 Jul 2020
(Sharecast News) - Shares in low-cost African airline Fastjet slumped on Friday after warning that the continued suspension of all flights and access to funding could cause the group to collapse.
Fastjet said it had chosen to continue to suspend all flights after lockdowns in both South Africa and Zimbabwe were extended until at least the end of July.
The company said it intends to resume routine commercial flight operations once permitted by the South African and Zimbabwean governments and noted it was also continuing to perform limited repatriation flights from South Africa to Zimbabwe.
However, the AIM-listed group cautioned that if flight operations do not restart to sustainable levels by the beginning of September or it was unable to access hard currency from the Reserve Bank of Zimbabwe through repayment against its historical legacy loans, it would be unable to continue trading beyond the end of August.
Fastjet said it had cash reserves of $1.0m, with no restricted cash.
As of 0910 BST, Fastjet shares had sunk 12.50% to 0.14p.
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