African budget airline Fastjet has warned that it could go bust unless it secures new funding, knocking more than two-thirds off the value of its shares in a matter of hours. The airline, which started operating in 2012 with the backing of easyJet’s founder, Sir Stelios Haji-Ioannou, is in discussions with major shareholders to raise more funds but admitted it had no assurance of a positive outcome. Read more: Shares in Fastjet have plummeted after the chairman took off

In a statement, the company said:

The company is currently in active discussions with its major shareholders regarding a potential equity fundraising, in the absence of which the group is at risk of not being able to continue trading as a going concern. If no new funds emerge, Fastjet said it might not be “able to continue trading as a going concern” and could be suspended from trading on London’s Aim market. ‘Whilst initial discussions with certain shareholders have been positive, discussions are ongoing and there can be no guarantee of a successful outcome.’

Haji-Ioannou, who was a top Fastjet shareholder but now owns just 1.6pc, said he was disappointed it was embroiled in fresh turmoil. The London Stock Exchange-listed compnay said it “had continued to consume cash”, and from $7.5m (£5.7m) a month ago it now had just $3.3m in its cash reserves – more than half of which is locked up in Zimbabwe. Haji-Ioannou, Fastjet's major shareholder, had previously been embroiled in a boardroom tussle at the airline, saying he had lost faith in the management and board in early 2016. But yesterday Haji-Ioannou said: ‘I have been increasingly concerned over the last few years at the way Fastjet was being run – first by Ed Winter and his team and now by Nico Bezuidenhout.
Shares in African international airline Fastjet fall by 72% amid equity talks amongst shareholders, with the airline warning that trading may be suspended entirely and the company liquidated if a solution is not found.