{"id":273277,"date":"2018-09-24T09:57:48","date_gmt":"2018-09-24T07:57:48","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=273277"},"modified":"2018-09-24T09:57:48","modified_gmt":"2018-09-24T07:57:48","slug":"saa-plots-plan-to-reach-profitability-in-the-next-three-years","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/government\/273277\/saa-plots-plan-to-reach-profitability-in-the-next-three-years\/","title":{"rendered":"SAA plots plan to reach profitability in the next three years"},"content":{"rendered":"<div class=\"article-content\">\n<p>South African Airways is making progress with its plan to reach profitability in the next three years, even it faces challenges such as a jump in fuel prices, chief executive officer Vuyani Jarana said in an interview.<\/p>\n<p>Jarana said he expects losses until the company can break even or achieve profitability at the end of the 2021 financial year as the embattled state-owned airline improves its revenue.<\/p>\n<p>\u201cI\u2019m still quite comfortable about the execution of the plan,\u2019\u2019 Jarana said late Sunday.<\/p>\n<p>The airline reported a loss of R5.7 billion ($398 million) in the year ended in March, more than double what it had budgeted, and received a government bailout last year to avoid a default on debt owed to Citigroup Inc.<\/p>\n<p>The management is considering a sale of the airline\u2019s catering unit, Air Chefs, and outsourcing or selling SAA Cargo, the Johannesburg-based City Press reported Sunday, citing an internal report. It\u2019s also headed to record a 6-billion-rand loss.<\/p>\n<p>The CEO said the leaked document outlines scenarios but no final decisions have been made. He pointed out the the company\u2019s own corporate plan forecasts losses for the next several years.<\/p>\n<p>\u201cOn revenue we\u2019re quite happy, but other aspects are more difficult,\u201d he said in an interview.<\/p>\n<p>SAA is watching to see what competitors do about fuel hedging strategy, an unanticipated issue that\u2019s emerged with higher oil prices, he said. The airline has used a hedging policy, \u201cbut it\u2019s not an aggressive one,\u201d Jarana said.<\/p>\n<p>The airline\u2019s international business and supply chain reform are core strategy topics, he said.<\/p>\n<p>\u201cWe\u2019re focusing a lot on areas where there are revenue leakages due to malfeasance,\u201d he said.<\/p>\n<hr \/>\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/business\/273259\/saa-is-technically-bankrupt-and-bleeding-cash-report\/\" target=\"_blank\" rel=\"noopener\">SAA is technically bankrupt \u2013 and bleeding cash: report<\/a><\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>South African Airways is making progress with its plan to reach profitability in the next three years, even it faces challenges such as a jump in fuel prices, chief executive officer Vuyani Jarana said in an interview.<\/p>\n","protected":false},"author":59,"featured_media":156293,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[26,1675],"class_list":["post-273277","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-government","tag-headline","tag-saa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/273277","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\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=273277"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/273277\/revisions"}],"predecessor-version":[{"id":273279,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/273277\/revisions\/273279"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/156293"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=273277"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=273277"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=273277"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}