Fifteen months after a £50m backing from its shareholders, Fastjet, the pan-African low cost carrier has announced the commencement of a fund-raising exercise, which it plans to complete during July 2016.
Although the airline did not say how much it was seeking to raise, it intends to use the funds for working capital and to effect the necessary changes to its operations to reduce costs and pursue revenue generating initiatives to grow the business.
Ahead of its annual meeting today Fastjet said domestic routes within Tanzania were showing signs of recovery, but international services remained difficult. Passenger numbers in the first half have risen from 363,726 to 390,000 but the load factor – a measure of capacity utilisation – has fallen to 47% from 70% last year.
Fastjet, listed on AIM, a sub-market of the London Stock Exchange recently appointed, Nico Bezuidenhout as its new CEO effective 1st August 2016.