The country’s state airline, South African Airways (SAA) said it posted a net profit of R252 million.
The Interim Board of SAA presented the results of the business’ performance for the financial year 2022/23 at the Annual General Meeting (AGM), held at Airways Park at the OR Tambo International Airport Precinct, attended by the shareholder representative, Transport Minister Barbara Creecy yesterday.
The state-owned airline said that its total revenue increased by 183%, from R 2.0 billion the prior year, to R5.7 billion.
The financial year 2022/23 is the first fiscal period of commercial operations since SAA exited business rescue and restarted operations in September 2021.
SAA said its operations turned a prior year's negative EBITDA of R1.0 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. The International Air Transport Association (IATA) Annual Report 2023 notes tough economic times for air transport worldwide, with the pressures of post-Covid recovery, persistently high interest rates, the war in Ukraine, and the highest oil (and therefore jet fuel) prices impacting airlines’ sustainability,” SAA said in a statement.
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. The first intercontinental route to Sao Paulo, Brazil was only launched in October 2023. Since the period ended in March 2023, the airline has increased its routes to 16, including the achievement of the launch of Perth, Australia. Earlier this year, SAA announced additional frequencies to Harare, Lusaka, Lagos, Accra, Mauritius Kinshasa and Perth,” SAA further stated.
The national flag carrier also introduced a new route, to a second destination in the Democratic Republic of Congo, Lubumbashi.
“In the process, SAA has been a conscientious creator of jobs. 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 2000, which includes 140 pilots,” SAA said.
“These 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 and globally admired brand. This has put SAA on a path to financial sustainability without reliance on the fiscus” SAA Interim CEO Professor John 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 further added.
Aviation analyst Phuthego Mojapele said SAA's feat was achieved through prudence in weighing its punching power, focus on the West African market and practical relationship.
He said the results were credible because the airline, since exiting business rescue, had a clear plan where it knew its creditors including its balance of payments.
"Everyone knew what they were doing and who they needed to pay and they ran a streamlined business with the between six to nine aircraft they had. They accepted the backseat in things they could not achieve like business class packages and all that," Mojapele said.
He said the airline's focus on the West African market, the launch pad to and collaboration with Sun Express,, the Turkish based low carrier ensured that through the power by hour agreement was a masterstroke.
"SAA entered into a dump lease agreement with Sun Express where when it is summer in Europe, the airlines make a deal where SAA pays only for the utilisation of aircraft without worrying about the aircraft maintenance, cabin crew, insurance and other things, this helps in relinquishing a lot of responsibilities," he said.
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