South African Airways posts R155 million net profit, marks second consecutive year of profitability

South African Airways (SAA) has announced a significant turnaround in its financial fortunes, recording a net profit of R155 million for the year ending March 31, 2025.

This marks the second consecutive profitable year since the airline emerged from business rescue in April 2021. With these results unveiled at the SAA Annual General Meeting (AGM) held in Johannesburg, the airline's performance is being hailed as a rapid recovery following years of turmoil.

The airline itself, now operating under the SAA Group umbrella, achieved a commendable profit of R30 million for the same financial period. This growth has been underpinned by a striking 35.89% increase in revenue, reaching R8.838 billion, compared to R6.504 billion generated in the previous fiscal year.

SAA has shown resilience in the face of numerous challenges, maintaining a strong cash position with R1.967 million in cash and cash equivalents, and notably, no interest-bearing borrowings at the close of FY2024/25. The airline's equity has also seen a healthy boost, hitting R6.649 million.

During the fiscal period, SAA has also taken strategic steps to expand its fleet, receiving approval to increase its operational aircraft to 21. By the end of FY2024/25, 14 aircraft were in service, enabling SAA to serve 16 destinations worldwide.

Currently, the airlines operates with a fleet of 19 planes. Significant steps towards revitalising its international offerings have also been made, with the resumption of flights to Perth, Australia, as well as the launch of new routes to Lubumbashi and Dar es Salaam.

SAA Group CEO, Professor John Lamola, expressed optimism about the airline's trajectory, stating, “These results demonstrate that despite numerous challenges, SAA is on course for a bright future. We have entered a period of structured and strategic stabilisation of the business, focusing on institutionalising robust governance and agile management systems.”

He further emphasised that the airline is dedicated to modernising its fleet and expanding its route network to enhance customer experience.

Chairperson of the SAA Board, Sedzani Faith Mudau, shared her gratitude for the collaborative efforts that have led to the airline's recovery. She praised the backing from Transport Minister Barbara Creecy, the Department of Transport, and the former leadership of the airline.

“As the incoming board, we acknowledge that our financial recovery could not have been achieved without the support of our shareholder representative,” she said, adding that the board is committed to reinforcing governance measures to restore public trust in the national carrier.

In her address, Minister Creecy commended SAA on achieving this vital milestone, pointing out that it not only reflects a modest net profit but also the completion of five outstanding audits.

“The shareholder will continue to support SAA’s stabilisation and growth,” she stated, highlighting the need for the disciplined implementation of plans and the pursuit of sound governance to ensure sustained operational performance.

IOL