Fastjet soars as it seeks £9m lifeline to stay afloat

FASTJET shares have rocketed after the struggling airline outlined plans to secure emergency funding of up to £9.3m as it looks to stave off the threat of collapse.

The carrier, which offers budget flights across a number of African countries, warned earlier this week that it is at risk of going bust.

But yesterday Fastjet said it will commence a share sale to raise £5.4m, while its biggest shareholder Solenta Aviation will pump £2.3m into the group.

In addition, the company wants to raise up to £1.6m by way of an open offer.

The funds will provide the group with ‘sufficient working capital for the remainder of 2018’, it said, having warned it had a cash balance of just £2.5m on Wednesday.

Half of the money will be allocated to its Zimbabwe and Mozambique operations and to pay off loans.

In addition, Solenta boss Mark Hurst will join the Fastjet board next week.

Investors welcomed the news. Shares soared 165.4pc, or 5.38p, to 8.62p.