StockMarketWire.com - Budget carrier Fastjet said it would suspect flight operations in Mozambique from this coming Saturday.

The suspension would include flights under a code-share arrangements with LAM Mozambique Airlines.

Fastjet said competition in the African nation had continued to intensify following the market entry of Ethiopian Airlines as a domestic carrier.

Losses at the operation in the first half of 2019 had amounted to $2.4m.

It was expected that costs related to the suspension including refunds would amount to around $150k.

Fastjet said it remained committed to returning to Mozambique once demand for air travel in the country increased sufficiently compared to capacity supplied.

The company's cash balance at 30 September was $2.8.

'The detrimental financial impact of ongoing supply and demand challenges means that suspending our Mozambique operations is the right course of action at this time,' chief executive Mark Hurst said.

'However, we remain committed to Mozambique, will be monitoring the market environment very closely and expect to return there as and when the situation improves.'


At 1:33pm: [LON:FJET] Fastjet PLC share price was 0p at 1.43p



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