LONDON (Alliance News) - fastjet PLC's shares fell on Tuesday morning after it said challenging market conditions and currency headwinds will lead to lower than anticipated revenue in 2015 and 2016.
Shares in fastjet were trading down 11% at 42.00 pence early Tuesday.
The African low-cost airline warned earlier this month that the prolonged presidential election in Tanzania led to lower demand from governmental and civil service traffic, which resulted in a dip in passenger numbers in November to 62,843 from 63,146 a year earlier.
On Tuesday, fastjet confirmed that this trend has continued.
fastjet added that international route approvals are expected very soon in Zimbabwe, while the final stage of the Zambia air operator's certificate application process is expected to complete in early 2016.
"fastjet is proactively taking steps to manage its operating costs and overheads, and fully align its growth strategy with demand," the company said in a statement.
"The board believes 2016 will be a year of network growth and that the group is expected to be cash flow positive for the next financial year," fastjet added.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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