Budget airline Fastjet has warned that it may not be “able to continue trading as going concern” unless it obtains new funding. The airline said that it has just $3.3m in cash. However, $1.75m of this amount is held in Zimbabwe and is not readily accessible due to foreign currency shortages. The companies shares plummeted on Wednesday by 72 percent after investors heard the warning. The company said that it was talking to its major shareholder in order to raise more money. In a statement the company said,
Whilst initial discussions with certain shareholders have been positive, discussions are ongoing and there can be no guarantee of a successful outcome.
Fastjet flies in several African countries including South Africa, Tanzania and Zimbabwe.