Fastjet warns over 2015 and 2016 revenues

Low-cost African airline Fastjet said revenues for 2015 and 2016 are likely to be lower than anticipated due to challenging market conditions and currency headwinds.

The company said it is proactively taking steps to manage its operating costs and overheads and fully align its growth strategy with demand.

Fastjet remains confident these actions will ensure it continues to be well placed to capture the significant growth potential in the African aviation market.

“The board believes 2016 will be a year of network growth and that the group is expected to be cash flow positive for the next financial year.”

In an operational and trading update, the group said that as previously announced, the prolonged adverse effect of the presidential election in Tanzania has led to reduced governmental and civil service traffic and lower demand for travel more widely across the country.

As far as Zimbabwe is concerned, international route approvals are expected very soon which will allow the start of a significant Fastjet Zimbabwe network early in the New Year.

Fastjet said the final stage of the Zambia air operator certificate application process is expected to be completed in early 2016.

At 0920 GMT, shares were down 8.9% to 42.95p.