fastjet raises £3mln as longer term funding talks continue

Fast-growing low-cost African airline fastjet (LON:FJET) has raised £3mln through its equity financing facility.

The draw-down of funds entailed the issue of 62.5mln fastjet shares to Darwin Strategic, the provider of the equity financing facility.

Raising this equity has afforded fastjet the opportunity to advance discussions with parties for longer term funding required for the further development of the fastjet business.

On Tuesday, the company announced it had signed an agreement with BidAir, one of Africa’s largest cargo operators, to carry cargo on fastjet’s fleet of Airbus A319s, opening up a new revenue stream for the company.

Richard Bodin, chief commercial officer of fastjet said: "The cargo revenue rates per kilo in Africa are some of the highest in the world due to the challenges presented by poor road and rail infrastructure. Carrying cargo by air is often the most efficient choice for cargo operators.