fastjet
Luqa, Malta July 16, 2016: Fastjet Airbus A319-132

Shares in Fastjet fell 29% to 1.65p on Wednesday as the African-airline said it was in funding talks with shareholders.

The low-cost airline, which is majority-owned by easyJet (LON: EZJ), has warned that it could collapse unless it agrees on a deal with key creditors or raises enough money over the next few days.

“Whilst discussions to date with certain shareholders and creditors have been positive, discussions are ongoing and there can be no guarantee of a successful outcome,” said the company in a statement.

“If the company is unable to carry out an equity fundraise and/or reach an agreement with its key creditors in the coming days, the group would be unable to continue trading as a going concern.”

Fastjet has said that it is able to continue operating in November due to “some improvement in trading and cash generation”, allowing the airline more time.

Shares plummeted 70% in June on a previous financial warning after saying it was “at risk of not being able to continue trading as a going concern”.

The airline was first launched in Tanzania in 2012 but has expanded over South Africa, Zimbabwe, Zambia, Mozambique, Uganda, Malawi and Kenya.

Shares in the group (LON: FJET) are -30.85% at 1,62 (1344GMT).