SAA has published its financial results for the 2023/24 financial year, reflecting a loss of R354 million.
These financial results, which were published 10 months late, represent the second full year of operations since SAA exited business rescue.
The airline had achieved a profit of R210 million for the 2022/23 financial year, making the significant loss over the next 12 months particularly disappointing.
While SAA increased its revenue by 23% year-on-year to a total of R7 billion, it attributed the significant loss to “external factors” and currency fluctuations.
According to SAA, it had incurred a R415 million foreign-currency translation loss caused by the rand’s volatility.
It also highlighted the Russia/Ukraine war as a key contributor to its losses, as this reportedly pushed jet fuel costs from R1.3 billion to R1.9 billion.
Further impacting the organisation was a global shortage of aircraft, leading to increased leasing costs of over 30% – while this issue also resulted in the delays to the delivery of aircraft.
No more outstanding audits
The 2023/24 financial statements represent the last of the airline’s outstanding audits from its Business Rescue period, and all prior-year adjustments are now resolved.
It said it is now on track to meet all reporting deadlines while focusing on improving its audit outcomes, too.
Despite the airline’s significant loss for the 2023/24 financial year, SAA Chief Executive John Lamola remains positive about the future.
“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”.
Mango remains grounded
While domestic airline Mango remains a subsidiary of SAA, the latter airline said it is not involved in Mango’s business rescue process in any way.
“SAA has no authority or direct oversight over Mango’s financial obligations, current and future business plan,” said SAA in a media statement.
“SAA remains focused on its own strategic objectives and operational commitments, separate from Mango Airlines.”
Mango was placed in business rescue in August 2021, and has been grounded ever since.
While it had proposed a business rescue plan, this plan was taken to court by Aviation Co-ordination Services (ACS) recently.
The High Court in Johannesburg ruled in this case that Mango’s proposed business rescue plan – which would have resulted in each creditor getting approximately 4.43 cents to the rand – cannot be implemented.
As a result of its plan being struck down in court, Mango remains grounded in a strained South African airline industry.
Loading ...
