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African low-cost carrier Fastjet’s future ‘hangs in the balance’

Low-cost African carrier Fastjet today warned that its future is in the balance as it is running out of cash.

The airline is in “active discussions” with major shareholders over fundraising.

But Fastjet, originally backed by easyJet founder Stelios Haji-Ioannou, warned that a failure to inject new funds meant the airline  “is at risk of not being able to continue trading as a going concern”.

The carrier issued a funding update to the London Stock Exchange this morning revealing that its cash balance had more than halved in the last month from $7.5 million to $3.3 million.

“Whilst initial discussions with certain shareholders have been positive, discussions are ongoing and there can be no guarantee of a successful outcome,” Fastjet said.

“It is expected that any equity fundraise will be concluded in conjunction with the announcement of the company’s annual results for the year ended 31 December 2017.

“If the fundraise is not successful it will result in the annual results not being published and the company being suspended from trading on [the secondary market] AIM.”

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