Fastjet pins hopes on Zimbabwe currency stability
By Guest Guest, Jun 27, 2019
Harare- Regional airline operator Fastjet has said it expects to be profitable in the full year period to December 2019 helped by demand in Zimbabwe and South Africa.
CEO Nico Bezuidenhout told Reuters that protability going forward depends on currency stability in Zimbabwe. “the variable for us is currency. Zimbabwe currency is still a risk” Bezuidenhout said adding that the company’s profit projection is cautious.
On Monday June 24 the government of Zimbabwe scrapped the multicurrency regime in rushed moves which were presumably enforced to stem a freefall in the RTGS$.
The RTGS$ was consummated in February 2019, when the government patially floated the exchange rate between the USD and the local currency equivalents.
Fastjet operates a low cost airline plying the southern African region that is South Africa, Mozambique and Zimbabwe.
In 2018, the company went into technical insolvency after and at one time highlighted that it had cash enough to cover operational demands for only 24 days. It however highlighted that much of its cash was trapped in Zimbabwe which since then has been suffering from an acute forex crisis.
The company however successfully raised capital which helped arrest the crisis. it however went on to divest from its home country which is Tanzania as trading conditions tightened.
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