Low-cost carrier Fastjet said it\u2019s suspending commercial flights in South Africa and Zimbabwe due to the pandemic, jeopardizing negotiations to raise emergency funds through a disposal.<\/p>\n
The shares skidded after Fastjet said talks to sell a stake in its Zimbabwe operation are on hold until it\u2019s clear how long extended lockdowns will last.<\/p>\n
An investor group including Solenta Aviation Holdings Ltd. and Zimbabwean investors has expressed interest, Fastjet reiterated in a release on Friday.<\/p>\n
Fastjet, the first discount airline spanning sub-Saharan Africa, is in a precarious situation with just enough funds to survive until the end of August.<\/p>\n
If flights haven\u2019t reached \u201csustainable levels\u201d by the start of September, Fastjet said won\u2019t be able to keep operating without support from Zimbabwe\u2019s central bank.<\/p>\n
Cash reserves at the end of June stood at $1 million.<\/p>\n
For now, Fastjet will operate about three repatriation flights per month from South Africa to Zimbabwe. A fuller service will resume once governments in the two countries give the all clear, it said.<\/p>\n
Shares of Fastjet traded 13% lower as of 08h08 in London, after dropping as much as 22%. The company has a market value of 5.3 million pounds ($6.6 million).<\/p>\n