African Low-Cost Airline Fastjet Is Running on Fumes
Photo Credit: A Fastjet aircraft. The airline is still burning through cash. Fastjet
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It looks like the end is nigh for beleaguered Fastjet. Unless investors are willing to put up more cash for an airline that shows no sign of profitability six years after launching.
Fastjet is running out of cash – and quickly.
The African low-cost carrier, which has been beset with problems since launching in 2012, said it would stop flying at the end of October unless it secures additional funding.
In order to avert a collapse, Fastjet has started talks with its major shareholders regarding a potential equity fundraising.
“Whilst initial discussions with certain shareholders have been positive, discussions are ongoing and there can be no guarantee of a successful outcome,” the company said Wednesday in its half-year results announcement.
Aside from burning through its cash reserves, the company has other problems.
A more competitive operating e
