In an update, the Africa-focused airline said the current headroom in its cash resources “remains minimal” and that it will require additional funds of at least US$1.5mln before November if restrictions on travel continue in its markets until then.
The group said its major shareholder SAHL, has confirmed it will underwrite a capital raise of at least US$1.5mln, adding that if the funds are raised it will have “sufficient resources to meet its operational needs until the end of December 2020 should flight operations not restart by then”.
If flight operations did resume and the funds were raised, Fastjet said it expected to continue operating until at least December 2021 based on current projections.
Updating on its current trading, the company said it was continuing to perform limited repatriation flights between Zimbabwe and South Africa, and that with the continued restrictions on international travel into South Africa it had maintained its suspension of scheduled flight operations with routine commercial flights stopped until at least September 30, 2020.
While South Africa has begun to relax some lockdown restrictions, the firm said it did not believe international travel will resume until mid-October at the earliest.
The company’s shares tumbled 21.7% to 0.02p in early trading on Thursday.