FastJet warns it may not be able to continue trading past end of August due to currency shortages in Zimbabwe

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Fastjet, the low-cost airline yesterday said its current cash headroom was “minimal” and it will cease to be a going concern if its flight operations did not restart at sustainable levels by September

Fastjet PLC - FastJet warns it may not be able to continue trading past end of August

Fastjet PLC (LON:FJET) has warned that it may be “unable to continue trading as a going concern” beyond August 31, 2020, if it is unable to restart flight operations or access currency from the Reserve Bank of Zimbabwe.

In a trading update, the low-cost African airline said that following the extension of coronavirus lockdown measures in both Zimbabwe and South Africa its routine commercial flights were currently suspended until July 31, adding that it was currently performing around three repatriation flights per month.

The company also said it has been in discussions with an investor consortium led by Solenta Aviation Holdings Limited and other Zimbabwean investors in relation to the disposal of its holding in Fastjet Zimbabwe, although it said the talks will remain on hold until the impact and timeline of the lockdowns in South African and Zimbabwe were better understood.

Based on its current projections and funds, Fastjet said it has sufficient resources to make ends meet until the end of August, however, the firm said its cash headroom was “minimal” and it will cease to be a going concern if flight operations did not restart at sustainable levels by September.

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