Fastjet slims losses but storm clouds remainComments 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.