South African Airways (SAA) reported R7.3 billion in passenger revenue for the 2023/2024 financial year, showcasing its steady recovery since resuming operations in 2021.
Story Summary:
- SAA has achieved R7.3 billion in passenger revenue for the 2023/24 financial year.
- The airline operates a fleet of 13 aircraft and services 15 routes, including new destinations in DRC and Tanzania.
- The airline seeks further investment and financing options to grow its fleet and enhance customer service.
SAA revenue performance in 2023/2024
This marks a 49% increase from the R5.6 billion reported in the previous year.
Interim CEO Professor John Lamola said:
“Our airline has grown significantly in the past two years, expanding our routes and fleet while generating sustainable revenue.”
Despite ongoing challenges from global aircraft supply constraints, SAA has managed to operate with 13 aircraft across 15 routes.
Lamola highlighted that the airline’s growth is also tied to reopening 11 international stations, including key hubs like Mauritius, Perth, and São Paulo.
“We have tripled our fleet size and quadrupled our revenue in just two years,” Lamola added.
National carrier portfolio moves to transport ministry
In a significant shift, President Cyril Ramaphosa transferred SAA’s shareholder responsibilities to the Department of Transport in August 2024.
The national carrier now falls under the purview of Minister Barbara Creecy.
This move is part of the government’s broader efforts to consolidate state-owned enterprises and streamline their oversight.
SAA’s leadership has already met with the minister, presenting a comprehensive briefing on its current state and future goals.
“We are proud to be part of the transport ministry’s portfolio and are focused on enhancing South Africa’s air transportation capabilities,” said Lamola.
The move is expected to further align the airline with the government’s transport infrastructure strategy.
SAA wants more money to bolster business
To keep up with its expansion and maintain competitive market share, SAA has outlined the need for continuous capital investment.
Lamola explained that the airline is exploring financing options to fund its growth, with plans to add more aircraft and elevate customer service.
“SAA’s growth and defence of market share will require continuous capital investment. We are looking at financing options to sustain this momentum,” Lamola said.
One key asset SAA can leverage is its portfolio of real estate, valued at R5.5 billion, along with surplus aircraft stock.
These resources provide the airline with the opportunity to raise further funds as it moves towards long-term profitability.
“Our focus is on ensuring we fund ourselves from operations while also pursuing award-winning service to our customers,” Lamola emphasised.
New direct SAA flights to DRC and Tanzania coming in November
SAA continues to expand its route network and, as part of this growth, will launch two new direct flights from Johannesburg to Lubumbashi in the Democratic Republic of Congo and Dar es Salaam in Tanzania.
These routes, starting in November 2024, are part of SAA’s strategy to increase its presence in Africa and boost trade and tourism between South Africa and its neighbouring countries.
“We are excited to offer these new connections to our customers, further expanding our footprint on the continent,” Lamola stated.
The addition of these routes is expected to stimulate economic activity and foster closer ties between South Africa and these key African markets.
