Fastjet’s shares in steep dive

SHARES in Fastjet, the budget African airline backed by easyJet founder Sir Stelios Haji- Ioannou, nosedived 24 ¼ p to 43p yesterday as it sounded a profi t warning following tough trading conditions in its key Tanzania market.

The firm said it had enough funds to meet operational requirements but may look to raise more money this year. Stelios, who has a 12.6 per cent stake, recently called a general meeting to demand the removal of chief executive Ed Winter and warned that without major cost cutting the firm could soon run out of cash.

Fastjet said challenging market conditions had “been a lot more prolonged than management originally forecast” and it had already taken action to cut costs.