SAA losing streak continues with R4.7 billion loss

SAA has finally tabled a financial report for the 2014/15 financial year before Parliament, showing a multi-billion rand loss for the period.

The results confirm statements from finance minister Pravin Gordhan earlier in the week, saying that the airline suffered a R4.7 billion loss in the year. According to Gordhan, the airline faces another R1.8 billion loss in the 2015/16 period.

The airline has been making a loss since 2012, with the last available results, from 2013/14 showing the group post a loss of R2.59 billion. The airline has accrued losses of over R18 billion over the past 10 years.

SAA has also received a number of government bailouts worth at least R14.4 billion over the past 5 years, as part of its turnaround strategy, but was blocked from receiving further grants by Gordhan until a new board was established.

Earlier in the month, a new SAA board was elected, with president Jacob Zuma’s friend, Dudu Myeni still at the helm – which was followed by National Treasury granting the airline another R5 billion guarantee with strict conditions.

The results tabled before parliament are only the preliminary results for SAA. According to the finance minister, the auditors of the report raised a number of technical issues, which need to be reviewed by technical experts before the results can be finalised.

Revenue for the group was down to R28.5 billion from R28.7 billion previously, while operating expenses were up to R31.6 billion from R30.6 billion in 2014.

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SAA losing streak continues with R4.7 billion loss