Major loss for SAA
South African Airways (SAA) has published its financial results 10 months late and revealed a loss of R354 million for the year.
The airline published its audited financial results for the 2023/24 financial year at its Annual General Meeting on Wednesday, 17 July 2025.
This is close to ten full months after the company was supposed to send its results to parliament. The SOE previously claimed the delay was due to having to finalise the previous year’s reports.
The 2023/24 financial year reflected the second full year of operations since the group exited business rescue in April 2021.
It generated revenue of R7 billion, marking a 23% year-on-year increase for the group.
However, currency fluctuations and various ‘external’ factors impacted operations, resulting in a net loss of R354 million for the year. The group reported a profit of R210 million the previous year.
SAA said that outside of a R415 million foreign-currency translation loss because of the rand’s volatility, the final result also reflected several other exogenous factors.
This includes the impact of Russia’s invasion of Ukraine, which pushed jet fuel costs from R1.3 billion to R1.9 billion during the period.
It was also hit by a global shortage of aircraft, which increased leasing costs by over 30%. The company also saw delays in the delivery of budgeted aircraft.
These elements negatively affected revenue and EBITDA, with the latter declining from a positive R436 million in the prior year to a negative R90 million.
Slightly more positive, the group noted that its cash and cash equivalents remained strong at R1.4 billion. The group also has zero borrowings and R6.4 billion in equity.
The number of flights flown also jumped by 42%, with a significant increase in flights into Africa and routes from Johannesburg and Cape Town to Sao Paulo starting in the second half of the financial year.
Major correction from the auditors
SAA chief executive John Lamola said the results “detail a phase of intense uncertainty in the resuscitation of SAA” as the assumption of the company’s control by the strategic equity partner was awaited.
“Since then, we have entered a period of structured and strategic reconstruction of the business, focusing on institutionalising robust governance and management systems, whilst implementing plans on aircraft fleet and route network expansion and elevation of customer experience,” he said.
The latest financial statements were the last of the outstanding audits from the Business Rescue period, with all prior-year adjustments now resolved.
For example, SAA recognised a gain of R431 million in the current year by de-recognising business rescue credit obligations and recording the amount as sundry income.
That said, the group’s auditors said this amount should have been recognised as a prior-period adjustment to retained earnings, instead of sundry income in the current year.
Due to this correction, the airline’s net result was restated from a small profit of R60 million to a loss of R371 million.
This had a knock-on effect on the entire group’s performance. The broader SAA group also features several other subsidiaries, such as Mango and SAA Technical.
Mango is not receiving any financial support from SAA and is facing its own business rescue issues.
To improve its financial reporting, the board launched an Audit Health Plan that standardises key controls, expands internal audit capacity and improves collaboration with external auditors.
It said that after six consecutive audits, it is on track to meet all statutory reporting deadlines and devote its efforts to improved audit outcomes.
“The FY2023/24 results reflect significant progress in SAA’s financial health. We have strengthened the channels of our revenue streams and cost containment measures,” said Lamola.
“We have a debt-free, asset-rich balance sheet that is supporting the steady growth of the airline and the recovery of SAA as a global aviation brand”.
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