Fastjet PLC in the UK issued a profit warning earlier today, indicating that their march towards writing black bottom line figures will take a while longer to accomplish.
This comes hot on the heels of Stelios Haji-Ioannou attacking outgoing CEO Ed Winter and members of the Board of Directors when he demanded an Extraordinary General Meeting of the company last week to push for the ouster of several individuals.
Share values of the company have since dropped by over a third, impacting also on SHI’s own holdings of some 12 percent in the company – a sharp reminder no doubt to keep boardroom wrangles out of the public domain or else risk being punished by the market.
Fastjet’s main operational unit in Africa, Fastjet Tanzania, saw their sharp rise in passenger numbers over the past two years go flat immediately after the General Election in Tanzania, when the new government proclaimed a near total travel ban for bureaucrats and members of the government. This led to a dramatic loss of business for travel agents and airlines across the board in Tanzania.
New ventures of Fastjet in Zimbabwe are yet to mature with break even load factors, though sources close to the company have suggested that the airline is well on the way to accomplish this in 2016.
No added information could be obtained about the status of the planned Zambian and Kenyan offsprings, which are to take to the air later this year.
The airline has commented briefly on the fallout of the share value drop, stating that they have enough operational funds available to sustain operations throughout the year, but that they may seek another fund raising later this year. It was also mentioned that Fastjet PLC no longer expects a positive cash flow in 2016, largely tied to the situation in Tanzania, at least until the travel bans are lifted.