EasyJet founder Sir Stelios Haji-Ioannou’s budget airline in Africa has issued a profit warning following a public spat between the entrepreneur and the carrier’s management team last week.
It announced this week that it no longer expects a positive cash flow this year, due largely to Tanzania’s new government imposing a travel ban on bureaucrats.
The airline said it has enough funding to sustain operations this year, but that it might seek further funding later this year.
The airline’s share price fell to 41p yesterday from 67p on Friday.
Sir Stelios, who owns 12% of the airline, last week called for the CEO Ed Winter, who had already announced his decision to step down, to leave earlier than planned.
He is pushing for an Extraordinary General Meeting to discuss Winter’s position and that of other members of the Board.
FastJet also operates in Zimbabwe and is planning new bases in Kenya and Zambia.
