Fastjet stays airborne after trading boost but warns over its future survival

Embattled budget airline Fastjet will remain airborne at least for now after improved trading as discussions continued over its future.

The African airline had warned in October that it needed urgent cash to survive.

But it said improved trading and cash generation had secured its short term future while discussions with shareholders and creditors continued.

Shares in the company fell close to six per cent this morning as a result.

“The company continues to review its current cash requirements and is able to continue operating during November due to some improvement in trading, cash generation and internal efficiencies,” it said in a company statement.

“The headroom available allows the company further time to continue discussions with its major shareholders and creditors,” it added.

The company said that as of earlier this week it has cash balances of $3.9m (£3m), of which $3m was restricted cash held inside Zimbabwe.

“While discussions to date with certain shareholders and creditors have been positive, discussions are ongoing and there can be no guarantee of a successful outcome.

“If the company is unable to carry out an equity fundraise and / or reach an agreement with its key creditors, the group would be unable to continue trading as a going concern.” the company added.