South African Airways (SAA) has reported a strong financial performance for the 2022/23 fiscal year, marking a major milestone in its recovery.
With a net profit of R252 million, a 183 per cent increase in group revenue, and the elimination of legacy debt, SAA has demonstrated its ability to rebound from years of financial challenges.
Financial recovery and growth
The financial year, spanning April 2022 to March 2023, was the first full year of operations since SAA exited business rescue in September 2021. During this period, the airline posted significant gains:
- Group revenue surged from R2.0 billion to R5.7 billion.
- EBITDA improved dramatically, moving from a negative R1.0 billion to a positive R277 million.
- Positive equity of R4.7 billion was achieved, a marked improvement after years of negative equity.
- Legacy debt was fully repaid, leaving the airline free from interest-bearing obligations.
“This financial turnaround is a testament to the careful and hard work that went into relaunching SAA as a reliable and globally respected airline,” said Interim CEO, Professor John Lamola. “These results set SAA firmly on a path to financial sustainability without reliance on the fiscus.”
Strategic growth and fleet expansion
Operating with just 6–8 aircraft during the 2022/23 financial year, SAA served nine destinations and still managed to achieve profitability. Since then, the airline has doubled its active fleet and is preparing for further growth, with seven additional aircraft scheduled for delivery by 2025/26.
New routes and expanded frequencies have strengthened the airline’s network. Highlights include:
- The launch of intercontinental services to São Paulo, Brazil, in October 2023.
- Increased frequencies to Harare, Lusaka, Lagos, Accra, Mauritius, Kinshasa, and Perth.
- The addition of a second destination in the Democratic Republic of Congo, Lubumbashi.
SAA now operates 16 routes, including its first Australian service to Perth.
Job creation and sustainability
SAA’s recovery has also spurred job creation, with staff numbers growing from 800 to around 2,000, including 140 pilots. Subsidiaries such as Air Chefs and SAA Technical have contributed to this growth.
Looking ahead, SAA is focused on consolidating its route network and fleet strategy while pursuing new opportunities.
“We are entering a phase of quantum growth, with plans to renew our fleet, elevate the customer experience, expand intercontinental routes, and strengthen our environmental sustainability goals,” said Lamola.
