African budget operator Fastjet Group believes it has sufficient funds to last through August but is warning that it needs flight operations to resume to sustainable levels in September.
Its services have effectively been shut down since 7 April, bar a limited number of repatriation flights, following government lockdowns in South Africa and Zimbabwe.
Fastjet says it has been carrying out about three repatriation flights per month, but that its main commercial services remain suspended at least until the end of July.
The continuing government restrictions, and the uncertainty over their easing, has delayed discussions over Fastjet Group’s planned sale of its Zimbabwean airline division to an investor consortium, led by Solenta Aviation Holdings.
This divestment is intended to raise much-needed funds but the discussions, says Fastjet, “have not restarted”.
Based on funds available, and expected to be made available, as well as current creditor terms, Fastjet Group believes it will have enough resources to cover operational needs until the end of August.
It holds cash reserves of $1 million including $100,000 in Zimbabwe.
But Fastjet Group warns that this cash margin “remains minimal” and will be drawn down over the next few months to settle costs and obligations if the travel restrictions continue into September.
If flight operations do not restart to “sustainable levels” by the beginning of September, it says, or the company cannot access hard currency from Zimbabwe’s central reserve bank, it will “cease to be a going concern” after 31 August.
