SAA reports another loss but raises revenue

SAA optimistically predicts it will return to profitability but says it will take several years. Image: SAA

In a statement released by South African Airways (SAA) total revenue of R27.1bn was achieved during the year against the previous financial year's R23.9bn.

"Total income increased by 14%, while operating costs went up 12% year-on-year," the company said following its annual general meeting, after the result publication was delayed by five months.

The airline cut costs by US$89m in the year, but said these were offset by higher fuel costs and the national currency's flagging rate against the dollar.

SAA has posted a loss for several years and in 2013 borrowed R1.5bn to keep flying. The government, its only stakeholder, gave the firm a R5-bn guarantee to finance a turnaround in late 2012.

It submitted a 20-year turnaround plan last year, its tenth attempt in 13 years, detailing ways to take it into profitability.

"With strong and energetic leadership we have in place, we intend to return this airline to profitability in line with the projections made in our strategy document," said chief executive Monwabisi Kalawe on Wednesday (29 January).

Current goals include renewing its fleet, having bought ten new Airbus jets last year.

Source: AFP via I-Net Bridge