Holidaymakers booked to travel around Africa have been advised that the region’s low-cost airline, Fastjet, could fall in the coming days due to financial struggles.
The warning came from Fastjet itself, which admitted that it could collapse in the coming days should it fail to reach an agreement with potential investors.
According to a report in The Guardian, the six-year-old budget airline has been talking to investors since June this year, when it first flagged financial difficulties.
Image: Fastjet/Facebook
Since, the airline has issued several warnings of potential closure, including one last month that said the carrier could collapse by the end of October, and one earlier this week that advised that thanks to “some improvement in trading” it would be able to operate until sometime in November.
In a statement on The Guardian, Fastjet said “there can be no guarantee of a successful outcome” as discussions with shareholders and creditors continue.
“If the company is unable to carry out an equity fundraise and/or reach an agreement with its key creditors in the coming days, the group would be unable to continue trading as a going concern.”
Fastjet
Image: Fastjet/Facebook
Fastjet’s potential collapse comes shortly after Europe suffered from two airline closures, including the fall of Cyprus’ Colbat Air and Denmark’s Primera Air.
Click here to read the full article on The Guardian.
- READ: European carrier Cobalt Air ground all flights
- READ: Travellers told to ‘find alternative flights’ after Danish carrier fails
- READ: How do Travel Agents handle the collapse of a carrier?
