Shares in African budget airline Fastjet fell by a third this morning as challenging market conditions hit the company harder than expected.

In a statement, Fastjet announced the effects of low demand had been “a lot more prolonged than management originally forecast” and, despite taking action to manage costs and overheads, expects results for 2016 to be “significantly below market expectations.” They added that the Group no longer expected to be cash flow positive for the year.

However, the company has “sufficient funds to meet its operational requirements” and may consider raising further funds later this year.

“We remain confident in its low-cost airline model and is well positioned to capture the significant growth potential of the developing African aviation market.”

Fastjet (LON:FJET) is currently trading down 30.41 percent at 46.80 (0947GMT).

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