SAA
By Mpho Moloi
South African Airways (SAA) has announced a financial achievement for the 2022/23 fiscal year during its Annual General Meeting (AGM) held at Airways Park, OR Tambo International Airport Precinct. For the first time in over a decade, SAA has posted a net profit of R252 million, signifying a major turnaround from previous financial struggles.
ANC Commends SAA’s Remarkable Turnaround
The African National Congress (ANC) has lauded this performance as a testament to its commitment to revitalizing state-owned enterprises (SOEs). “This significant achievement reflects the ANC’s unwavering commitment to professionalizing the public service and revitalizing SOEs, as outlined in our manifesto,” stated Mahlengi Bhengu-Motsiri, National Spokesperson for the ANC. The party praised SAA’s extraordinary 183% revenue growth, from R2 billion to R5.7 billion, and its impressive turnaround from a R1 billion loss to a R277 million profit in earnings, highlighting the airline’s progress towards financial recovery, operational stability, and sustainable growth.
Financial Highlights of SAA in 2022/23
• Revenue Growth: SAA’s total revenue for the fiscal year surged by 183%, climbing from R2.0 billion in the previous year to R5.7 billion.
• Net Profit: The airline recorded a net profit of R252 million, a first since 2012.
• Operational Efficiency: SAA turned a previous year’s negative EBITDA of R1.0 billion into a positive R277 million.
• Debt Management: SAA made the final payment against its legacy debt during the year, leaving the airline without interest-bearing debt.
Transport Minister Barbara Creecy, present at the AGM, praised SAA’s management for steering the airline back to profitability. The airline operated a streamlined fleet of 6-8 aircraft during the financial year, serving up to 9 destinations. This prudent approach has set a solid foundation for the current trajectory of growth and expansion.
SAA’s Strategic Growth and Expansion
Following the successful fiscal year, SAA has embarked on a prudent fleet expansion plan. The number of operated aircraft is expected to double, with seven more aircraft scheduled for delivery during the financial year 2025/26. This includes the launch of the first intercontinental route to Sao Paulo, Brazil, in October 2023. Since the close of the 2022/23 fiscal period, the airline has increased its routes to 16, marking the start of flights to Perth, Australia, and additional frequencies to cities like Harare, Lusaka, Lagos, Accra, and Kinshasa.
Job Creation and Economic Impact
SAA’s recovery has significantly contributed to job creation, with the number of staff growing from 800 to approximately 2,000, including 140 pilots. This expansion not only supports SAA’s operational capabilities but also plays a crucial role in advancing South Africa’s socio-economic development.
Vision for the Future
Looking ahead, SAA is focusing on consolidating its current route network and fleet strategy. “We are now 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,” stated SAA Interim CEO, Professor John Lamola
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