SAA is bleeding money - again

'GLITCH': R431M 'GAIN' SUBTRACTED AFTER AUDITING

- Marizka Coetzer

Transport Minister Barbara Creecy's words that South African Airways (SAA) was finally in a position to contribute economic value weren't even cold when audited financial results for the financial year indicated the opposite.

While the company generated revenue of R7.0 billion - a 23% year-on-year increase - the group also reported a net loss of R354 million, compared to a R210 million profit in the prior year, SAA spokesperson Vimla Maistry said.

This follows the annual general meeting on 17 July, which received the audited financial results for the year ended 31 March 2024 (FY2023-24).

"Besides the R415 million foreign-currency translation loss due to the rand's volatility, these results reflect the impact of exogenous factors on the airline," Maistry said.

"This includes the effects of the Ukraine conflict, which pushed jet fuel costs from R1.3 billion to R1.9 billion; a global shortage of aircraft, which drove leasing costs up by over 30% in 2023; and delays in the delivery of budgeted aircraft, all of which negatively impacted revenue and Ebitda (earnings before interest, taxes, depreciation and amortisation).