SAA swings into R354 million loss but claims improved financial health
Image: IOL
South African Airways (SAA) has declared a loss of R354 million for the 2023/24 financial year while simultaneously announcing a "debt-free, asset-rich balance sheet" that's poised to support its recovery as a global aviation brand.
CEO John Lamola portrayed these results as a snapshot of resilience, highlighting the airline's notable increase in revenue and operational efforts despite external pressures.
In the audited financial results reflecting the airline's second year of operations since its exit from business rescue in April 2021, SAA on Thursday reported that it had generated revenue of R7 billion, a 23% year-on-year increase for the group.
However, currency fluctuations and various 'external' factors impacted operations, resulting in a net loss of R354m for the year. The group reported a profit of R210m the previous year.
The latest financial statements were the last of the outstanding audits from the business rescue period, with all prior-year adjustments now resolved.
These include SAA recognising a gain of R431m in the current year by de-recognising business rescue credit obligations and recording the amount as sundry income.
The group's auditors said this amount should have been recognised as a prior-period adjustment to retained earnings, instead of sundry income in the current year.
Due to this correction, the airline's net result was restated from a small profit of R60m to a loss of R371m.
Lamola said the results detailed a phase of intense uncertainty in the resuscitation of SAA as the assumption of the company's control by the strategic equity partner was awaited.
'Since then, we have entered a period of structured and strategic reconstruction of the business, focusing on institutionalising robust governance and management systems, whilst implementing plans on aircraft fleet and route network expansion and elevation of customer experience,' he said.
SAA said that outside of a R415m foreign-currency translation loss because of the rand's volatility, the final result also reflected external factors including the impact of Russia's invasion of Ukraine, which pushed jet fuel costs from R1.3bn to R1.9bn during the period.
It was also hit by a global shortage of aircraft, which increased leasing costs by more than 30%.
These elements negatively affected revenue and earnings before interst tax depreciation and amortisation (EBITDA) , with the latter declining from a positive R436m in the prior year to a negative R90m.
The group noted that its cash and cash equivalents remained strong at R1.4bn with zero borrowings and R6.4bn in equity.
'The FY2023/24 results reflect significant progress in SAA's financial health. We have strengthened the channels of our revenue streams and cost containment measures,' Lamola said.
The number of flights flown also jumped by 42%, with a significant increase in flights into Africa and routes from Johannesburg and Cape Town to Sao Paulo starting in the second half of the financial year.
SAA said to improve its financial reporting, the board launched an Audit Health Plan that standardises key controls, expands internal audit capacity and improves collaboration with external auditors.
BUSINESS REPORT

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Citizen
7 hours ago
- The Citizen
City Power continues to roll out free basic electricity
ity Power is urging indigent customers within the Randburg Service Delivery Centre (SDC) supply areas to register for the free basic electricity (FBE) programme before the deadline on July 31. City Power spokesperson Isaac Mangena explained that this initiative primarily targets vulnerable households, including the unemployed, pensioners, child-headed households, and those earning under R7 503.01 or less per month, providing 50kWh of free electricity monthly to help meet essential household needs. Additionally, indigent customers will be exempt from the R70 service charge and R130 network capacity charge, for a total of R200 in savings every month. 'This is part of our continued efforts to provide relief for the most vulnerable members of our community during these challenging economic times,' said Mangena. Customers are encouraged to register by visiting the Randburg SDC weekdays from 08:00 – 16:00. The application form is also available on the City Power website: Customers should bring along the following documents for registration: ID, City Power prepaid meter number, Proof of income, Proof of address, Proof of Sassa grant (if applicable), Latest 3 months bank statements, and COJ rates and taxes account. Mangena added that customers should take advantage of this opportunity to reduce their monthly electricity costs and ease the financial strain on their household. 'This registration drive is crucial in ensuring that eligible households receive the support they need to maintain access to essential electricity services.' Follow us on our Whatsapp channel, Facebook, X, Instagram, and TikTok for the latest updates and inspiration!

IOL News
12 hours ago
- IOL News
Julius Malema declares Lindt chocolates, R7K sheep gift — but no interest-free loans
Economic Freedom Fighters (EFF) leader Julius Malema has declared ownership of a sheep worth R7,000, along with gifts from a Chinese diplomat, in the 2025 Register of Members' Interests. Image: X/EFF Economic Freedom Fighters (EFF) leader Julius Malema has been gifted a sheep worth R7,000, Lindt chocolate, and a bottle of wine. The details emerged from the latest declarations made by Members of Parliament (MPs), as captured in the report adopted and released on Friday by the Joint Committee on Ethics and Members' Interests. The Register of Members' Interests lists South African MPs' financial and personal interests to promote transparency and prevent conflicts of interest. For the first time, all 400 public representatives submitted their declarations by the stipulated deadline. Malema, who is known for his radical political rhetoric and often controversial parliamentary behavior, also listed a directorship in Mgagao Shamba. This is part of his remunerated work outside of Parliament. The business focuses on farming, events, and sales. Under gifts and hospitality, Malema disclosed receiving a bottle of wine and a box of Lindt Lindor chocolates from Liu Kaiyang of the Embassy of the People's Republic of China. He did not disclose the value of the wine. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Malema declared that he was gifted sheep worth R7,000 by BaPedi Queen Lenaganabatho II Manyaku Thulare. He declared no ownership of property or land. Malema also had no interest-free loans or sponsorships to declare. Malema listed several family trusts under his name: Ratanang Family Trust – Beneficiary: Ratanang Malema (his son). Munzhedzi Family Trust – Beneficiaries: Himself, his wife Mantoa Matlala, and children Ratanang, Munzhedzi, and Kopano Malema. Kopano Charity Trust – Beneficiary: Listed as for charity. Mazimbu Investment Trust – Beneficiaries: Himself, his wife, and their children. Malema and his party are known for fiery debates and frequent disruptions in Parliament. IOL Politics

IOL News
12 hours ago
- IOL News
How MPs are securing their futures: A look at financial interests in shares and properties
ANC MP Supra Mahumapelo is the only MP who listed under property and land ownership 17 residential properties, vacant plots, land, and a tourism lodge. Image: Doctor Ngcobo / Independent Newspapers The latest report on declaration of financial interests by Members of Parliament shows that a number of public representatives are investing for their future in shares in finance companies. This as some MPs made declarations on several properties and some even receive income from rentals and benefits from royalties. Rise Mzansi leader Songezo Zibi declared shares and financial interests in seven finance companies. Zibi has at least 7,000 shares valued at R1.1 million with Absa, 3,050 shares worth R410,000 with Investec Bank, and 1,300 shares valued at R377,000 with Shoprite, among others. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ ActionSA parliamentary leader Athol Trollip has a pension investment to the tune of R7 million. 'I invested my parliamentarian pension when I left Parliament with Glacier, and it is managed by FNB private wealth management,' said Trollip in his declaration. Deputy Minister for International Relations and Cooperation Alvin Botes, who owns five properties, declared that he has shares valued at R2.8m with Poliyane Property Trust. Botes is also receiving rental income from two of his properties. Cogta Deputy Minister Zolile Burns-Ncamashe made declarations in shares in three companies, with those at Isondlo Investments valued at R1.9m. He is a director of five companies, including one that is involved in construction of student accommodation, a hotel, and retainership in the King Sandile Development Foundation and Amatola Forestry Company. ANC MP Supra Mahumapelo is the only MP who listed under property and land ownership 17 residential properties, vacant plots and land, and a tourism lodge. Mahumapelo disclosed that he received income from rental. Deputy President Paul Mashatile has declared three properties. Mashatile named two residential family homes in Constantia and Midrand, as well as another house in Kelvin, Johannesburg. Minister of Electricity Kgosientso Ramokgopa listed seven properties - two flats, three houses, and open land - under his name. One of them was in the process of being sold, and another was a rented property when Ramokgopa made his declaration. Malusi Gigaba, co-chairperson of the Standing Committee on Defence, disclosed ownership of a house in Centurion and named a rented residential property in Waterkloof, Pretoria. DA MP Alexandra Abrahams receives income from the rental of a flat, just like her colleague Matt Butt, who has four apartments and rents one property. EFF MP Chumani Matiwane receives income from vehicle rental, and colleague Veronica Mente is also receiving income from residential rental. Human Settlements Minister Thembi Simelane declared that she is a director of four companies, including the Silvana Bistro Coffee, and that she does consultancy for Golden Threads. While EFF MP Khaya Ceza received benefits in royalties from the South African Music Rights organisation, his colleague Eugene Mthethwa listed performers, video, and copyright royalties.