FastJet shares crash as passengers snub African carrier

Shares in FastJet crashed after the low-cost airline that wants to be a pan-African carrier issued a profits warning following a prolonged downturn in demand.

The shares collapsed by 45% to 36p as the airline, started by easyJet founder Sir Stelios Haji-Ioannou, said that it would not be cashflow positive this year as hoped. It has already issued two profit warnings in the past year.

FastJet said that it was considering cutting routes from the nascent network, to align it with present demand.

The airline also said it could raise more funds, to give it headroom as it struggles to grow.

The budget carrier said it had $20 million (£14 million) of cash from which it could fund its operations, insisting it was confident of its business model and the significant growth potential of the African market.

The airline is already facing a challenge from investor Sir Stelios who has criticised its high cost base and wants to see the management team removed. He recently called their profits guidance “a pipe dream”.