With no apparent sense of urgency, the South African Airways (SAA) Group has announced some key figures of its earnings for the year ended March 2025, five months later than required.
As a state-owned entity (SOE), SAA is required under the Companies Act to prepare its annual financial statements within six months of its financial year end, while the Public Finance Management Act (PFMA) determines when the results must be presented to parliament.
SAA announced that the group, including subsidiaries such Air Chefs and SAA Technical, made a R155 million net profit and R30 million for the airline during the period. The announcement was made on Friday during the group’s Annual General Meeting.
ALSO READ: ‘Show us financial statements’: Economists doubt SAA is ‘debt-free’
Is SAA out of the woods?
Before taxpayers and the Auditor-General (AG) celebrate that things are improving at SAA, the airline must make its annual report and full audited financial statements available.
The national airline said the statements will be made available for public scrutiny once they have been presented before parliament, which was supposed to be done by the end of September 2025.
It seems the national carrier has taken the first step by sharing the financial results with Transport Minister Barbara Creecy. The press statement by SAA also includes some of the airline’s key figures.
SAA’s performance
Apart from the R155 million net profit made by the group, it said it has generated revenue of R8.8 billion, a 35.89% year-on-year increase on the R6.5 billion in revenue generated in the previous financial year.
“SAA’s cash and cash equivalents position remained strong, at R1.9 million, at the end of FY2024-25,” said the national carrier.
“The airline has no interest-bearing borrowings at year’s end and R6.649-million in equity.”
The national carrier said it was greenlit to increase the fleet to 21 aircraft during the financial year; however, only 14 aircraft were in service by the end of the financial year. Currently, the airline flies 19 aircraft.
The future
SAA has since rebuilt its network to a diversified portfolio of 17 routes.
“In its 2024-25 financial year, and in April 2024, it resumed flights to Perth, Australia,” said the flag carrier. “It also launched international routes to Lubumbashi and Dar es Salaam.”
The airline’s CEO, Professor John Lamola, said: “These results demonstrate that despite numerous challenges, SAA is on course for a bright future.
“We have entered a period of structured and strategic stabilisation of the business, focusing on institutionalising robust governance and agile management systems.”
ALSO READ: SAA is bleeding money – again
Board looks at improving audit outcomes
Sedzani Faith Mudau, chairperson of the SAA Board, said one of their focus as the incoming board will be strengthening governance and reinforcing public trust in SAA.
This will be done “through the implementation of its Integrated Audit Health Plan, the airline will work to improve audit outcomes and secure long-term financial sustainability,” she said.
“In doing so, we aim to ensure that South Africans continue to place their trust and confidence in their national carrier.”
Speaking of audit outcomes, the national carrier has not received an unqualified audit outcome since 2016.
What is going on?
Reportedly, the AG has dismissed some financial statements with the ultimate disclaimer for two years running: that she was unable to express an opinion on the statements due to the fact that she could not determine the accuracy of several important figures.
This is not the first time the national carrier has been late in presenting its financial statements. Its financial results for the year ended March 2024 are still not available online; they were also released in a press statement, but this time they were at least 10 months late.
Back to finical year 2025, Minister Creecy congratulated the national carrier on another profitable year since it exited business rescue in April 2021. The first time SAA recorded profit was for the year ended March 2023, this is the second time.
“The shareholder congratulates SAA for reaching this important milestone, which includes both a modest net profit and finalising the last of five outstanding audits.”
“The shareholder will continue to support SAA’s stabilisation and growth. Going forward, we must ensure disciplined implementation of our approved plans, sound governance, operational performance, and a sustainable operating profit.”
NOW READ: End of an orange era as Mango’s wings get final clip
About the Author
