fastjet Plc
("fastjet" or the “Company”)
7 March 2016

Trading Update

fastjet (AIM:FJET), Africa's low-cost airline, today provides an update on current trading and its operations.

Further to the operational update in December 2015, the challenging market conditions affecting much of the African aviation industry have been a lot more prolonged than management originally forecast.

fastjet has already taken action to manage its operating costs and overheads and is implementing further measures including reducing capacity and rationalising the route network to align it with current demand.

Based on current management forecasts, the Board expects results for 2016 to be materially below market expectations and the Group no longer expects to be cash flow positive for the year.

The Board monitors the Company’s cash position very carefully and with over $20m of cash available at the end of February 2016, and based on current forecasts, it has sufficient funds to meet its operational requirements. The Board may consider raising further funds during the year to provide additional headroom and ensure the Company has the necessary resources to fund future growth as market conditions improve.

The Company remains confident in its low-cost airline model and is well positioned to capture the significant growth potential of the developing African aviation market.

ENDS

 

For more information, contact:

fastjet Plc

Tel: +44 (0) 20 3651 6307

Colin Child, Executive Chairman

Lisa Mitchell, Chief Financial Officer

 

UK media - Citigate Dewe Rogerson

Tel: +44 (0) 20 7638 9571

Angharad Couch

 

Eleni Menikou

 

Nick Hayns

 

South African media - Tribeca Public Relations

Tel: +27 (0) 11 208 5500

Cian Mac Eochaidh

 

Kelly Webster

 

For investor enquiries please contact:

 

Liberum Capital Limited - Nominated Adviser and Joint Broker

Tel: +44 (0) 20 3100 2222              

Clayton Bush

 

Christopher Britton

 

W.H. Ireland Ltd.- Joint Broker

 Tel: +44 (0) 20 7220 1666

James Joyce

 

Mark Leonard

 

 

NOTES TO EDITORS

About fastjet Plc

fastjet Plc is the holding company of the low cost airline fastjet which commenced flights under the fastjet brand in Tanzania in November 2012. fastjet Zimbabwe was successfully launched in October 2015. By adhering to international standards of safety, quality, security and reliability; fastjet has brought a new flying experience to the African market at unprecedented low prices. Utilising its fleet of Airbus A319s, fastjet is implementing the low-cost model across Africa and its long-term strategy is to become the continent's first low-cost, pan-African airline.

The results of a customer satisfaction survey showed that 100% of customers were likely to recommend fastjet to a friend. In developing its strong brand and identity, fastjet has won and been nominated for a number of awards, including winning three Transform awards for the rebrand and launch of fastjet, the award for "Brand Strategy of the Year" at 2014’s Drum Marketing Awards in London, and the Transport Innovator Award at the 8th Transport Africa Awards 2015 in Johannesburg.

fastjet Plc is quoted on the London Stock Exchange's AIM Market.

 

For more information see www.fastjet.com

Posted on 7th March 2016