South African Airways (SAA) together with its subsidiaries, has posted a profit of R252 million for the financial year 2022/2023. This is the first time the national carrier has posted a profit since 2012.
The interim board led by Dr Derek Hanekom have released SAA’s 2022/23 financial year results since the airline exited business rescue and restarted operations in September 2021.
The results showed that the total revenue increased by 183%, from R2 billion the prior year, to R5.7 billion.
SAA said that the organisation was able to turn the prior year's negative earnings before interest, taxes, depreciation, and amortisation (EBIDTA) of R1 billion into a positive R277 million.
“This positive 2022/23 performance is particularly notable given the challenging global aviation environment at the time and the then uncertainty around the future of SAA with a strategic equity partner,” SAA said.
Job creation
SAA said that in addition to the positive financial results, the company was able to create more employment in the sector.
“Including the subsidiaries, Air Chefs catering, and SAA Technical aircraft maintenance facilities, the size of the staff has steadily grown from 800 to the current total number around 2,000, which includes 140 pilots,” SAA said.
More planes and destinations
The national carrier noted that over the financial period it was able to expand its fleet and saw the number of operated aircraft double.
“SAA operated between 6 to 8 aircraft during the financial year, serving only up to 9 destinations. Since then, a prudent fleet expansion plan has seen the number of operated aircraft double, and seven more aircraft rented for delivery during the financial year 2025/26.”
Earlier this year, SAA said that additional flights to Harare, Lusaka, Lagos, Accra, Mauritius Kinshasa and Perth were created.
The national carrier also introduced a new route, to a second destination in the Democratic Republic of Congo, Lubumbashi.
SAA Interim CEO Professor John Lamola said that the pleasing results of the 2022/23 financial year are emblematic of the hard and careful work that went into the relaunching of SAA as a reliable airline.
“This has put SAA on a path to financial sustainability without reliance on the fiscus” Lamola said.
“We have now entered a period of consolidation of the current route network and fleet strategy and are looking to the next phase of quantum growth as SAA renews its fleet to elevate its customer offering, open more intercontinental routes, and pursue its environmental sustainability goals,” Lamola said.
SAA is debt free but is searching for funding
Last month, SAA noted that it was debt-free but is looking for additional funding from the National Treasury or private banks.
The carrier informed Parliament’s Standing Committee on Public Accounts (Scopa) that in order to get back on track, the national carrier needs another capital injection.
SAA said that it had to pull back on its plans as the R3 billion that was going to be injected into the company fell through.
The funds would have come through via the controversial 51% sale of SAA to the Takatso Consortium.
SAA is also still looking for an equity partner and the Minister of Transport, Barbara Creecy said that the national carrier will lose market share if they do not get a partner.
An equity partner will provide a cash injection to SAA and will allow the company to expand and create more regional and international routes.
IOL BUSINESS