South African Airways (SAA) reported a loss of R150 million for the first three months of the 2024 financial year, slightly better than the expected loss of R182 million, according to the National Treasury’s report to Parliament’s Standing Committee on Appropriations.
- SAA Technical, a subsidiary of SAA, was the only profitable entity, reporting a profit of R4.4 million, while other subsidiaries, including Mango and Air Chefs, experienced losses.
- SAA’s total revenue of R1.1 billion was 22% lower than the budgeted R1.4 billion due to decreased demand for domestic and regional travel during the period.
- The average load factor for domestic travel was estimated at 60%, while for regional travel, it was 49% in the first quarter.
- SAA faced flight cancellations in June due to aircraft maintenance and a lack of spare aircraft, impacting its operational performance.
- Operational costs were higher than revenue, with increased operating costs attributed to factors such as SARS penalties, higher labor costs, and material costs.
- Previous claims of SAA’s reported profit have been called into question, with doubts raised about the accuracy of the reported figures and the lack of transparency surrounding consolidation entries.