Shares crash as auditors cast doubt on Fasjet
SHARES in Africa’s first budget airline Fastjet crashed by a third yesterday after its auditors KPMG said its future was in significant doubt.
KPMG said there was uncertainty as to whether the group, whose shares fell 0.42p to 0.83p, could continue as a going concern after it reported a £37million loss in the 18 months to December 31, 2012.
Fastjet reported a £37million loss in the 18 months to December 31, 2012.
In results released after markets closed on Friday, KPMG said Fastjet’s future prospects were dependent upon improved trading, particularly by starting international routes from present base Tanzania to other parts of Africa and additional funding.
Fastjet, led by executive chairman David Lenigas and backed by easyJet founder Sir Stelios Haji-Ioannou, said it had enough cash to continue for the foreseeable future.
It said its Tanzanian operation was very popular and it would begin domestic South African flights in July.
