Cape Town – South African Airways (SAA) is expected to report an operating profit for the 2022/2023 financial year, according to interim CEO John Lamola.
Although the exact amount is not yet known, Lamola described it as historic and a significant achievement for SAA.
The company’s draft annual financial statements will be presented to the board and auditors before being made public at the end of June.
SAA’s financial statements have not been audited since 2018, but the auditing process for the 2019-2022 financial years is set to be concluded by the end of June, Lamola said while appearing before Parliament’s standing committee on public accounts (Scopa) on Tuesday.
The audit has been complicated due to SAA’s subsidiaries and the absence of management support for Mango, which is under business rescue.
SAA has expanded its market, adding new routes and destinations.
The company aims to reach 20 destinations, including one intercontinental destination, by March 2024 and is looking to lease six additional aircraft to double its fleet.
South African Airways turned a ‘modest yet substantial profit’ in the last financial year.
This is according to SAA CEO John Lamola.
Lamola told SCOPA today that embattled SAA is on a resurgence notwithstanding SAA not publishing financials for the last 4 years.#TheLegalSA pic.twitter.com/9pJiQ0yg59
— The Legal SA (@TheLegalSA) May 30, 2023
The positive indicators suggest that SAA is on the path to recovery and fulfilling its obligations to its strategic equity partner.
“All indicators are positive that the business is recovering to a level where the shareholder will be able to fulfil the obligation made in the memorandum of understanding with the strategic equity partner that we are delivering a capable airline, an airline that is just waiting to be scaled up,” Times Live quoted Lamola as saying.
The airline’s new interim board chairperson Derek Hanekom is also upbeat about the modest profit that the airline made.
Hanekom agreed that an equity partner is necessary, EWN reported.
“Should anything go awry and it should not go through, the airline will not collapse. I can give you that assurance. It simply means growth will be held back,” Hanekom said, according to the report.
ALSO READ | SAA gets interim board
Public Enterprises Minister Pravin Gordhan appointed the interim board of directors for SAA in April.
The minister said the appointment of the board underscored the government’s unwavering commitment to the success and stability of the airline.
“Their exceptional experience and expertise will guide the airline toward a prosperous future in collaboration with the Takatso Consortium.
“We recognise the challenges SAA has faced in the past and the importance of learning from those experiences to ensure the airline’s future success. The government is resolute in demonstrating our dedication to restructuring SAA and revitalising state-owned enterprises, as part of our broader commitment to promoting economic growth and development.
“To support SAA in achieving its goals, we have put in place strategies and plans that align with the airline’s vision and objectives,” Gordhan said.
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Compiled by Betha Madhomu
