fastjet expects USD8m cost reduction in 1Q2017, planning fundraising

fastjet forecast (25-Nov-2016) a 25% year-on-year reduction in fixed operating costs and overheads and a 35% reduction in variable operating costs in 1Q2017, totalling USD8 million. Reduced costs are expected to contribute to a significant improvement in performance in 1Q2017. The airline said GDS integration, an interline agreement with Emirates, new fare products aimed at connecting routes into single journeys and leveraging its social media presence have supported revenue generation, despite a reduction in seats flown. Additional costs associated with the airline's stabilisation plan, particularly the cost and terms associated with returning leased aircraft, have placed greater strain on available cash resources. The company expects to initiate a fundraising exercise, to be complete in 1Q2017. CEO Nico Bezuidenhout said the airline identified, "various geographic and strategic expansion opportunities," and expressed confidence that, with the necessary capital, the company can break even by 4Q2017. [more - original PR]