SAA pats itself on the back for another annual profit

SAA announced this week it had notched up an annual profit for the second time since exiting business rescue and said it appeared to be on the way to recovery after a prolonged financial crisis that cost the taxpayer nearly R50bn in bailouts.

CEO John Lamola said on Friday the national carrier had recorded a profit of R30m and a net profit of R155m for financial 2025. The airline, which came out of business rescue in April 2021, was continuing to implement plans for fleet modernisation and route network expansion.

“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.”

SAA also reported a profit in financial 2023, ending a stretch of more than 10 years of red ink.

Sedzani Mudau, chair of the new SAA board appointed in August last year, said the financial recovery could not have been achieved without the support of transport minister Barbara Creecy and the efforts of the former board led by Derek Hanekom.

“Through the implementation of its integrated audit health plan, the airline will work to improve audit outcomes and secure long-term financial sustainability. In doing so, we aim to ensure that South Africans continue to place their trust and confidence in their national carrier,” Mudau said.

We aim to ensure that South Africans continue to place their trust and confidence in their national carrier.

—  Sedzani Mudau

She said her board was committed to strengthening governance and reinforcing public trust in the airline.

The results for the year to end-March 2025 were released at the SAA AGM in Johannesburg on Friday.

“SAA generated revenue of R8.838bn, a 35.89% year-on-year increase on the R6.504bn in revenue generated in 2023/24,” a statement said.

“SAA’s cash and cash equivalents position remained strong, at R1.967m, at the end of 2024/25. The airline has no interest-bearing borrowings at year’s end and R6.649m in equity.

“During 2024/25, approval was granted to increase the fleet to 21 aircraft. By the end of the 2024/25 financial year, 14 of these aircraft were in service, serving 16 destinations.”

These destinations include Perth, Lubumbashi and Dar es Salaam.

SAA, which suffered a significant data breach in May last year, was implementing measures to improve cybersecurity, Creecy said in a written reply in parliament last month.

“These efforts are being guided by newly appointed leadership and a structured roadmap focused on capacity building, infrastructure modernisation, and enhanced governance. Budget allocations have been prioritised to support these initiatives within the current financial cycle.”

Last month, SAA and CemAir announced a codeshare partnership that seeks to strengthen connectivity between major cities and niche destinations not previously served by SAA.

“Unlike SAA’s other codeshare agreements, focused on regional or international routes, this partnership is exclusively domestic, designed to enhance accessibility and convenience for travellers across South Africa,” a statement released at the time said.

Business Times