Monday, 1 July 2013

FastJet's turbulent winter

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Shares in FastJet halved in value over the course of two days in June, when auditor KPMG warned of "material uncertainty" about its ability to continue operating amid deepening losses. The Stelios Haji-Ioannou-backed carrier posted a net loss of $56 million across its FastJet and Fly540 brands during the 18 months to December 2012, prompting KPMG to warn that continued fundraising would almost certainly be required if the airline is to stay afloat.

But strong sales figures later that week coupled with continued progress in entering the South African market saw its share price immediately bounce back. Though the volatile stock was still 75% down on its January peak at the time of going to press, chief executive Ed Winter is confident the tide has begun to turn in Africa's fledgling low-cost carrier market...