AGM: South African Airways Reports Steady Financial Gains

The Interim Board of South African Airways SOC Limited (SAA) has presented the results of the business’ performance for the financial year 2022/23 at the Annual General Meeting (AGM), held at Airways Park at the OR Tambo International Airport Precinct, attended by the shareholder representative, Transport Minister Barbara Creecy.  

The airline, together with its subsidiaries, posted a net profit of R252 million. Total revenue increased by 183%, from R 2.0 billion the prior year, to R5.7 billion.

The financial year 2022/23  is the first fiscal period of commercial operations since SAA exited business rescue and restarted operations in September 2021.

South African Airways operations turned a prior year's negative EBIDTA of R1.0 billion into a positive R277 million.

This positive 2022/23 performance is particularly notable given the challenging global aviation environment at the time and the then uncertainty around the future of SAA with a strategic equity partner. The International Air Transport Association (IATA) Annual Report 2023 notes tough economic times for air transport worldwide, with the pressures of post-Covid recovery, persistently high interest rates, the war in Ukraine, and the highest oil (and therefore jet fuel) prices impacting airlines’ sustainability.

South African Airways operated between 6 to 8 aircraft during the financial year, serving only up to 9 destinations. 

Since then, a prudent fleet expansion plan has seen the number of operated aircraft double, and seven more aircraft rented for delivery during the financial year 2025/26. The first intercontinental route to Sao Paulo, Brazil was only launched in October 2023.

Since the period ended in March 2023, the airline has increased its routes to 16, including the achievement of the launch of Perth, Australia. Earlier this year, SAA announced additional frequencies to Harare, Lusaka, Lagos, Accra, Mauritius Kinshasa and Perth. The national flag carrier also introduced a new route, to a second destination in the Democratic Republic of Congo, Lubumbashi.

In the process, SAA has been a conscientious creator of jobs. Including the subsidiaries, Air Chefs catering, and SAA Technical aircraft maintenance facilities, the size of the staff has steadily grown from 800 to the current total number around 2000, which includes 140 pilots.

“These pleasing results of the 2022/23 financial year are emblematic of the hard and careful work that went into the relaunching of SAA as a reliable airline and globally admired brand. This has put SAA on a path to financial sustainability without reliance on the fiscus” says SAA Interim CEO Professor John Lamola.

“We have now entered a period of consolidation of the current route network and fleet strategy and are looking to the next phase of quantum growth as SAA renews its fleet to elevate its customer offering, open more intercontinental routes, and pursue its environmental sustainability goals,” adds Lamola.