FASTJET TURBULENCE

LOW-COST carrier Fastjet Plc said it was suspending commercial flights in South Africa and Zimbabwe due to the pandemic, jeopardising negotiations to raise emergency funds through a disposal.

The shares skidded after Fastjet said talks to sell a stake in its Zimbabwe operation are on hold until it’s clear how long extended lockdowns will last. An investor group including Solenta Aviation Holdings Ltd and Zimbabwean investors had expressed interest, Fastjet said in a release on Friday. Fastjet, the first discount airline spanning sub-saharan Africa, is in a precarious situation with just enough funds to survive until the end of August. If flights haven’t reached “sustainable levels” by the start of September, Fastjet said it won’t be able to operate without support from Zimbabwe’s central bank.

Cash reserves at the end of June stood at $1 million (R17m) . Fastjet shares traded 13 percent lower as of 8.08am in London on Friday