South African Airways has disclosed its full-year results for the fiscal year to March 2023, claiming a net profit of R252 million ($14 million).
The carrier’s management board unveiled the performance during its annual general meeting in Johannesburg on 20 November.
SAA emerged from business rescue in September 2021. But a planned privatisation collapsed earlier this year and concern over future funding was discussed at a recent parliamentary committee hearing.
The committee was informed that SAA is “debt-free” during the October hearing. But while it is not intending to request additional government funding, the carrier requires investment in order to proceed with its expansion strategy.
SAA says the newly-released results show that the airline has turned in a “positive bottom line” for the first time since 2012.
Revenues for the company reached R5.7 billion, up from R2 billion in the previous year when the carrier posted an overall R3.6 billion loss.
SAA says it achieved positive equity of R4.7 billion, adding that this is a “welcome improvement” after “many years” of negative equity. It also made a final payment against legacy debt during the year.
As a result of the restructuring imposed by business rescue the airline’s fleet had shrunk – to around six to eight aircraft – during 2022-23, serving a network of some nine destinations.
But the airline says it is embarking on a “prudent” fleet expansion, and its fleet has since doubled to about 16. Another seven aircraft are expected to be leased for introduction by 2025-26.
SAA operates 16 routes and employs around 2,000 personnel including 140 pilots.
“We have now entered a period of consolidation of the current route network and fleet strategy,” says interim chief executive John Lamola.
He says the efforts to restructure the airline have put SAA on a “path to financial sustainability without reliance on the fiscus”.
