Alan Wilson from Stilton, Peterborough, Cambs, UK, CC BY-SA 2.0, via Wikimedia Commons
South African Airways (SAA) is once again flying through financial turbulence. The airline has posted a R3.5 billion loss for the financial year ending March 2024 marking yet another major setback in its attempt at recovery following business rescue and re-launch in 2021.
Despite public hopes and government backing, the newly published financial results reveal deep operational challenges and declining performance especially when compared to the airline’s modest R50 million profits posted just a year ago.
The losses stem from multiple factors:
- Soaring operating costs in a difficult economic climate
- Reduced route network and limited international expansion
- Lower passenger numbers amid stiff competition from low-cost carriers
- Delays in securing a strategic equity partner
According to board chair Derek Hanekom, the long-awaited deal with the Takatso Consortium (initially meant to buy a 51% stake) has now collapsed. Government is expected to fully reassess the way forward.
Industry analysts argue that SAA’s lack of fleet growth, route limitations, and uncertain future ownership make it hard to compete. Meanwhile, the airline still operates with a limited schedule and relies on government support, all while trying to establish long-term sustainability.
The late Minister of Public Enterprises Pravin Gordhan noted that there are no plans to shut SAA down, but a new strategy may be required to secure its survival in a fiercely competitive market.
As things stand, SAA may need further public funding or alternative partnerships. It must rebuild traveller trust through consistency and competitive pricing. The business model will need a radical rethink if the airline is to remain viable. While SAA is still viewed as a symbol of national pride, continued losses risk damaging public confidence, especially amid broader concerns around state-owned enterprises.
