(Alliance News) - Fastjet PLC said Monday that trading in 2019 was in line with management expectations and reiterated that it will require further funding by the end of February in order to continue trading in its current form.
The low-cost African airline said that in order to carry out its restructuring plan and to address its funding requirements, it "remains in active discussions" with investors for the disposal of its holding in its Zimbabwe unit.
This restructure would involve Fastjet selling its Zimbabwe business for USD8.0 million to a consortium which includes Solenta Aviation Holdings Ltd, which is the 60% shareholder in Fastjet.
Whilst discussions are ongoing, the company said it cannot guarantee a successful outcome.
"If the group is unable to carry out the restructuring proposal by the end of March 2020 it would be unable to continue trading as a going concern," Fastjet said.
In October the company had announced it suspended flight operations in Mozambique amid "ongoing supply and demand challenges". During the first six months of 2019, revenue from Mozambique had fallen to USD2 million from USD4 million a year prior.
In a trading update for the year ended December 31, Fastjet said its revenue, including the Zimbabwe unit, is expected to be USD42 million, up from USD39 million a year before.
Loss after tax is expected to be USD7 million to USD8 million compared to a loss of USD65 million the year before.
"Trading to the year end, including through the peak holiday season, was in line with management's expectations," the company said.
Fastjet shares were trading 1.8% higher in London at 0.17 pence each on Monday.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
