Apologies, we were far too optimistic in December. Back then we felt, after being impacted by October’s Tanzanian presidential elections, that demand for fastjet’s low-cost services would rebound in Q1’16. Unfortunately (in hindsight) it appears our timings were 6-9 months too early, with the Board saying yesterday that the “challenging conditions” had persisted longer than initially thought. As a result 2016 results are now predicted to be both “materially below expectations” and cashflow negative, with the company perhaps having to consider a fresh capital raise later in the year.
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Challenging conditions continue
- Published:
08 Mar 2016 -
Author:
Paul Hill -
Pages:
3
Apologies, we were far too optimistic in December. Back then we felt, after being impacted by October’s Tanzanian presidential elections, that demand for fastjet’s low-cost services would rebound in Q1’16. Unfortunately (in hindsight) it appears our timings were 6-9 months too early, with the Board saying yesterday that the “challenging conditions” had persisted longer than initially thought. As a result 2016 results are now predicted to be both “materially below expectations” and cashflow negative, with the company perhaps having to consider a fresh capital raise later in the year.