South African Airways has yet to return to stable profitability, after turning in a full-year net loss of R354 million ($20 million) for fiscal 2023-24.
The deficit – for the 12 months to 31 March 2024, its second full year since exiting business rescue – contrasts with the R252 million surplus revealed for 2022-23, the flag-carrier’s first profit in more than a decade.
SAA attributes the weaker performance, despite a 23% rise in revenues, to factors including a R415 million foreign-currency impact arising from the “volatility” of the South African rand.
It highlights a rise in fuel expenditure from R1.3 billion to R1.9 billion, delays in aircraft deliveries, and 30% higher leasing costs.
SAA adds that auditors adjusted the accounts’ treatment of business rescue creditor obligations, leading to a net profit of R71 million being restated to the R354 million net loss.
“These results detail a phase of intense uncertainty in the resuscitation of SAA as the assumption of the company’s control by the strategic equity partner was awaited,” says group chief John Lamola.
Over the course of 2023-24 the airline had still been the subject of a planned privatisation, with a consortium called Takatso lined up as a strategic investor.
But in March 2024 the privatisation plan collapsed and SAA was forced to embark on a revised business strategy.
Lamola says the carrier has been focusing on “robust” governance, while implementing fleet and network expansion plans, and improving customer experience.
SAA adds that it has initiated an “audit health plan” intended to “reinforce confidence” in the airline’s financial reporting through standardisation, expanded audit capacity, and collaboration with external auditors.
“After six consecutive audits in three years, SAA is firmly back on track to meet all statutory reporting deadlines, and to devote its efforts towards improved audit outcomes,” it states.
