African low cost carrier Fastjet continues to face a race against time to secure adequate fundraising to keep flying.

The carrier, founded by easyJet creator Sir Stelios Haji-Ioannou, today disclosed that it had cash balances of $3.4 million, of which $2.7 million is “restricted cash” held inside Zimbabwe.

The airline revealed last month that additional funding would be required by the end of October to enable it to continue operating.

In an update issued to the London stock exchange this morning, Fastjet said: “The company continues to review its current cash requirements and is able to continue operating beyond the end of October due to some improvement in trading and cash generation.

“The headroom available allows the company further time to continue discussions with its major shareholders and creditors.

“In conjunction with fundraising discussions, the company has been negotiating with key creditors of the group to reduce the outstanding balances due to be paid and reduce the burden of interest and capital repayments. This process remains ongoing.

“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.

“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’s route network includes Tanzanian domestic routes from its Dar es Salaam base and international routes from Tanzania to Lusaka in Zambia and Harare in Zimbabwe.