Rough Skies for SAA: R354 Million Loss Highlights Turbulent Turnaround

Ten Months Late, R354 Million Short

South African Airways has finally broken its silence ten months behind schedule with a financial report that pulls no punches. The airline posted a R354 million loss for the 2023/24 financial year, painting a sobering picture of the national carrier’s second full year since emerging from business rescue.

The report, presented at the AGM on 17 July 2025, comes after mounting pressure on the state-owned enterprise (SOE) to account to Parliament. While revenue grew to R7 billion, a 23% increase from the previous year, foreign exchange woes and rising fuel and aircraft leasing costs grounded any hopes of a profit.

One Step Forward, Two Steps Back?

SAA had ended the previous financial year on a high with a R210 million profit, a symbol of resilience following years of turbulence. But this year’s numbers tell a more complex story.

The volatile rand alone accounted for a R415 million translation loss, and global instability such as the Russia-Ukraine war drove jet fuel costs up from R1.3 billion to R1.9 billion. Aircraft shortages also spiked leasing prices by over 30%, while expected aircraft arrivals never materialised, stalling growth.

As a result, EBITDA dropped dramatically, from a healthy R436 million surplus last year to a R90 million deficit this year.

A Wake-Up Call, Not a Crash Landing

Despite the gloomy bottom line, SAA’s cash reserves remain solid at R1.4 billion, and it proudly reports zero debt and R6.4 billion in equity. Operational momentum is also visible: flight volumes are up 42%, with expansion into Africa and new long-haul routes like Johannesburg and Cape Town to São Paulo.

CEO John Lamola called this period one of “intense uncertainty”, especially while awaiting finalisation of the airline’s new equity partnership. “We’ve now entered a period of strategic reconstruction,” he said, highlighting efforts to rebuild governance structures and improve customer experience.

Audit Oversight Sparks Controversy

What’s stirring discomfort in some circles isn’t just the loss, but how it was reported. A major correction by the auditors revealed that R431 million, recognised as sundry income in this year’s report, should’ve actually been a prior-period adjustment. That tweak swung what was initially announced as a R60 million profit into a R371 million loss after restatement.

Critics on social media and in parliamentary corridors have questioned the oversight and delay. “You can’t rebuild trust in a state airline if the books aren’t clean,” said one X (formerly Twitter) user. Others defended the airline’s progress, praising the zero-debt position and route expansion as signs of life.

What About Mango?

The report also makes clear that subsidiaries like Mango Airlines remain in deep trouble. Mango, still in business rescue limbo, has received no financial lifeline from SAA, leaving its future uncertain and its employees in limbo. Calls are growing louder for clarity from both SAA and the Department of Public Enterprises.

Fixing the Books and Looking Ahead

In response to its audit challenges, SAA has introduced a new Audit Health Plan, an internal clean-up designed to fix key controls, expand audit capacity, and ensure collaboration with external auditors. With six consecutive audits now completed, Lamola insists that the airline is turning a corner.

“We’re stabilising,” he said. “Our debt-free, asset-rich balance sheet is the foundation we’re building on. SAA is on a path to reclaim its place as a global aviation brand.”

A Future Still Up in the Air

SAA’s return to profitability may still be on the radar, but this year’s report reminds South Africans that post-rescue recovery is anything but smooth. With external shocks, legacy baggage, and political oversight all in play, the airline’s future will depend not only on market forces but on the strength of its internal transformation.

For now, SAA remains a symbol of national pride navigating the turbulence of rebuilding, one financial year at a time.

{Source: BusinessTech}

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