Fastjet Warns Of More Turbulence

African budget carrier Fastjet warned that its results for the year would be well below market expectations, adding further turbulence as its second-largest investor seeks to oust chief executive Ed Winter.

The Tanzania-based airline said it no longer expected to be cash flow positive in 2016, citing challenging conditions in the domestic aviation market.

Operating from Tanzania and Zimbabwe, Fastjet has offered "no frills" flights to undercut larger carriers, seeking to copy the discount model pioneered by European airlines such as easyJet and Ryanair.

However, the airline has struggled in the face of tough conditions in Tanzania, its home market where most of its fleet is deployed.

Expansion into Zimbabwe last October has added to challenges, causing Fastjet to issue two warnings on 2015 revenue and announce plans to cut capacity and costs.

Last week, Stelios Haji-Ioannou, the easyJet founder whose private investment vehicle easyGroup holds 12 percent of Fastjet, said it was seeking a shareholder meeting to oust the CEO.

Haji-Ioannou said costs were too high for an airline with six planes.

Fastjet said it had USD$20 million in cash available at the end of February. It said this would be enough to meet operational requirements but it may raise further funds this year.