Fastjet slims losses but storm clouds remain

Comments Off on Fastjet slims losses but storm clouds remain

Shares in Fastjet nosedived again today as the embattled low-cost African airline remained mired in the red last year with little sign of improvement.

The AIM-listed company revealed operating losses for 2015 were $42.3 million (£29.3 million) — smaller than the $56.6 million it racked up a year earlier, but still “greater than expected”.

Revenues rose from $53.8 million to $65.1 million, but the company, which was spun out of Lonrho’s legacy aviation business Fly540, said they would not improve enough for the business to turn a profit this year. 

It admitted that trading had not improved this year, blaming a weak economy and political instability in Tanzania.

Former chief executive Ed Winter was forced out in March by major shareholder Sir Stelios Haji-Ioannou, the outspoken founder of easyJet. Last week, Haji-Ioannou called for Colin Child to be replaced as executive chairman.

Child today responded: “We’ve taken action to mitigate the effects of this prolonged downturn and have reduced operating costs and overheads.”

The share price fell 3.47p, or 12%, to an all-time low 24.78p.

Source Article from http://www.standard.co.uk/business/fastjet-slims-losses-but-storm-clouds-remain-a3262186.html

June 2, 2016 |
Copyright © 2018 LondonBusinessLink.co.uk. All Rights Reserved. LondonBusinessLink.co.uk
WordPress Directory Theme

Classified Ads Software

We use cookies to ensure that we give you the best experience on our website.
More about our cookies
Ok
Skip to toolbar