South African Airways to Boost SA's Economy by R32bn in 2030

The report on a study by Oxford Economics Africa released in Johannesburg today has shown that South African Airways (SAA) Gross Value Add to South Africa’s GDP in the 2023/24 financial year is R9.1 billion. 

The study examined the SAA Group’s core economic contribution by analysing the impact of direct activity generated by SAA on tourism, and South Africa’s international trade; and the indirect activity stimulated by its procurement spending; and induced impact that the wages of its workers and those in its supply chain support in the consumer economy.

The SAA Group which comprises subsidiary companies SAA Technical and Air Chefs and includes divisions SAA Cargo and SAA Voyager commissioned the study from Oxford Economics Africa, an essential performance management responsibility, as the airline business essentially stimulates and supports wider economic activity.

Oxford Economics is a London-based consulting leader in global economic forecasting and econometric analysis. Its more than 300 full-time economists and analysts track, analyse and model country, industry, and city-level trends to enrich clients understanding of the implications of the economic outlook for their decision-making. See https://www.oxfordeconomics.com/

Utilising a methodology that distils downstream and related economic benefits that SAA is a catalyst of the study established that airline Gross Value Added to South Africa will more than triple over the next five years, rising from R9.1 billion to R32.6 billion by 2029/30.

The study also shows that the SAA Group’s operations will support 86 700 jobs by 2029/30, up from 25 000 jobs in 2023/24.

Furthermore, the SAA Group’s operations stimulated fiscal revenues (tax) of R1.1-billion in 2023/24, a figure that is projected to rise to R4.4-billion in 2029/30.

The report estimates the SAA Group’s tourism impact at R1.7 billion in 2023/24, rising to R8.9 billion in 2029/30. 

The SAA Group’s trade impact in 2023/2024 amounted to R300 million, which is forecast to quadruple to R1.2 billion in 2029/30.

SAA Interim CEO, Professor John Lamola, said, “The Oxford Economics Report affirms that the State’s contribution as the sole shareholder in SAA has not been without a tangible return on investment (ROI). In turn, as the study ventures into a forecast of future impacts as derived from SAA’s growth and expansion plans. It serves as an independent validation of SAA’s current five-year Corporate Plan.”

SAA emerged from business rescue (BRP) in 2021 with just six aircraft and five routes. The airline currently flies 16 aircraft and will take delivery of an additional seven during calendar year 2025. The current footprint of 16 destinations is modelled to support the extension of the route network into Europe, North America and East Asia as SAA maintains its strategic brand as a premium international network carrier.  

“It is heartening to know that the impact of SAA dedicated staff goes beyond this organisation. It is helping build the South African economy, which ultimately impacts the upliftment of the African continent,”  Lamola adds.