{"id":165213,"date":"2017-03-17T16:14:25","date_gmt":"2017-03-17T14:14:25","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=165213"},"modified":"2017-03-17T16:14:25","modified_gmt":"2017-03-17T14:14:25","slug":"saa-expected-to-double-its-loss-to-r3-5-billion-in-2017","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/165213\/saa-expected-to-double-its-loss-to-r3-5-billion-in-2017\/","title":{"rendered":"SAA expected to double its loss to R3.5 billion in 2017"},"content":{"rendered":"

South African Airways has revealed that it is expecting to double its loss for the 2016\/17 financial year from a previously budgeted R1.7 billion to R3.5 billion.<\/p>\n

The company made the revelation in a reply to the standing committee on finance, News24 <\/a><\/strong>reported.<\/p>\n

\u201cThe budgeted loss for 2016\/17 was set at R 1.7 billion but the revised forecast refers to an expected loss of R3.5\u00a0billion,\u201d the board said.<\/p>\n

\u201cThe company will be focused on growing its revenues and to continue to apply cost compression initiatives,\u201d it added. \u201cIt operates in a very competitive industry and the company is aware of the risks from external factors to its business and the airline industry.\u201d<\/p>\n

According to the DA, the loss represents a real cash loss, as it does not contain the R1.9 billion impairment made in relation to the Airbus deal that contributed to the R4.9 billion loss in 2014\/15.<\/p>\n

The party questioned whether or not the previous forecast of R1.7 billion was played down to make it appear as if SAA and its chairperson, Dudu Myeni were making progress.<\/p>\n

SAA will undoubtedly run out of cash again, the DA said, and will be back with the “begging bowl” for another government handout.<\/p>\n

Global ratings firm S&P Global this week warned that South African SOEs like SAA were putting massive strain on the economy, and continued bailouts will ultimately push the country’s sovereign debt below investment grade.<\/p>\n

\n

Read:\u00a0Myeni\u2019s \u2018highest order\u2019 delinquency is killing SAA<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

South African Airways has revealed that it is expecting to double its loss for the 2016\/17 financial year from a previously budgeted R1.7 billion to R3.5 billion.<\/p>\n","protected":false},"author":10,"featured_media":137355,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[26],"class_list":["post-165213","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/165213","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=165213"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/165213\/revisions"}],"predecessor-version":[{"id":165215,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/165213\/revisions\/165215"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/137355"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=165213"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=165213"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=165213"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}