South African Airways (SAA) has announced its first profit in more than a decade, marking a significant turnaround for the national carrier. The audited financial results for the 2022/23 fiscal year reveal a net profit of R252 million and a positive EBIDTA of R277 million, compared to a negative EBIDTA of R1 billion in the previous year.
This milestone comes after SAA resumed commercial operations in September 2021, following its exit from business rescue. For the financial year ending in March 2023, the airline reported a 183% increase in revenue, climbing to R5.7 billion from R2 billion in 2022.
A Remarkable Recovery
Operating with a modest fleet of six to eight aircraft serving nine destinations, SAA managed to achieve profitability despite significant challenges in the global aviation industry. High interest rates, rising oil prices, the war in Ukraine, and post-COVID recovery pressures tested the resilience of airlines worldwide.
“These pleasing results are emblematic of the hard and careful work that went into relaunching SAA as a reliable airline and globally admired brand,” said John Lamola, SAA’s Interim CEO. He emphasized that the airline’s transformation has set it on a path to financial sustainability without dependence on government funding.
Challenges and Delayed Reports
The release of SAA’s financial results was delayed in August due to a disagreement with the Auditor General over how revenue from expired air tickets should be treated. However, these issues were resolved, and the results were presented at the airline’s annual general meeting.
Future Growth and Sustainability
Looking ahead, SAA is entering a new phase of growth. The airline plans to renew its fleet, expand its intercontinental routes, and pursue ambitious environmental sustainability goals. These initiatives aim to cement SAA’s position as a leading player in global aviation while contributing to South Africa’s economic development.
SAA’s financial turnaround signals a promising future for the national carrier, offering hope for continued growth and success in the years to come.
