Latest news with #R210
The Citizen
21-07-2025
- Business
- The Citizen
SAA is bleeding money
SAA suffered a net loss of R354m, after R210m profit the previous year. The recovery of the airline as a global aviation brand is on track, says its CEO. Picture: Moneyweb Transport Minister Barbara Creecy's words that South African Airways (SAA) was finally in a position to contribute economic value weren't even cold when audited financial results for the financial year indicated the opposite. While the company generated revenue of R7.0 billion – a 23% year-on-year increase – the group also reported a net loss of R354 million, compared to a profit of R210 million in the prior year, SAA spokesperson Vimla Maistry said. SAA's financial standing This follows the annual general meeting on 17 July, which received the audited financial results for the year ended 31 March 2024 (FY2023-24). 'Besides the R415 million foreign-currency translation loss due to the rand's volatility, these results reflect the impact of exogenous factors on the airline,' Maistry said. 'This includes the effects of the Ukraine conflict, which pushed jet fuel costs from R1.3 billion to R1.9 billion; a global shortage of aircraft, which drove leasing costs up by over 30% in 2023; and delays in the delivery of budgeted aircraft, all of which negatively impacted revenue and Ebitda (earnings before interest, taxes, depreciation and amortisation). 'The latter declined from a positive R436 million in the prior year, to a negative R90 million.' Maistry said SAA's cash and cash equivalents position remained strong at R1.4 billion at the end of FY2023-24. The airline has zero borrowings and R6.4 billion in equity. 'Despite global aircraft availability constraints, during 2023- 24, SAA operated on average, with a fleet of 10 aircraft serving 15 destinations. The number of flights flown increased 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,' she said. ALSO READ: Man who stole airport equipment that prevents mid-air collisions sentenced to 10 years Uncertainty in SAA's resuscitation SAA Group CEO John Lamola said the results detail a past phase of uncertainty in the airline's resuscitation. 'Since then, we have entered a period of structured and strategic reconstruction of the business, focusing on institutionalising robust governance and management systems, while implementing plans on fleet modernisation and route network expansion,' he said. Lamola said the financial statements mark the last of the outstanding audits from the business rescue period, with all prior-year adjustments resolved. 'SAA recognised a R431 million gain by derecognising business rescue creditor obligations and recording this amount as sundry income,' he said. 'However, the auditors concluded this amount should have been recognised as a prior-period adjustment to retained earnings, rather than in sundry income in the current year. 'As a result, the group's net result has been restated from a profit of R71 million to the reported loss of R354 million.' ALSO READ: SAA hit by 'significant' cyberattack disrupting internal operations 'They got money for mahala' Lamola said to reinforce its financial reporting, SAA's board has launched an Audit Health Plan that standardises key controls, expands internal audit capacity and strengthens collaboration with external auditors. 'After six consecutive audits in three years, SAA is firmly back on track to meet all statutory reporting deadlines and to devote its efforts towards improved audit outcomes,' he said. Economist Dawie Roodt said it was 'a big mess' that could no longer be whitewashed. 'I don't know what the accounting error is, but I suspect it has to do with impairment. Usually, if there are assets that you think you can't realise, then you write off the assets.' Roodt said SAA got an equity injection to try to rescue it. 'They got money for mahala. They tried to whitewash it,' he said. Political expert Piet Croucamp said bookkeeping got the better of the chief financial officer at SAA. 'It just proves what we have been saying for years. SA should not have a national carrier. They neither have the political will, nor the skills to manage the entity. 'They keep on trying and the public is paying for it,' he said. READ NEXT: SAA slips back into loss as fuel and plane leasing costs spiral
The Citizen
18-07-2025
- Business
- The Citizen
SAA slips back into loss as fuel and plane leasing costs spiral
Reports a R352m loss for the last financial year after a R210m profit in 2024. The recovery of the airline as a global aviation brand is on track, says its CEO. Picture: Moneyweb Soaring fuel prices and a 30% increase in plane leasing costs pushed airline operator South African Airways (SAA) into a R352 million loss for the year to March 2025, despite a 23% increase in revenue to R7 billion. This follows a R210 million profit the prior year. Rand volatility resulted in currency translation losses of R415 million. The airline was hit with several external shocks, such as a 46% increase in fuel costs to R1.9 billion due to the Ukraine conflict and a global shortage of aircraft which pushed up leasing costs by 30%. Delays in the delivery of budgeted aircraft had a negative impact in revenue and earnings before interest, tax, depreciation and amortisation (Ebitda), which reversed from a positive R436 million in 2024 to a negative R90 million in 2025. The cash position remains strong at R1.4 billion at year-end. It also has zero borrowings and R6.4 billion in equity. The airline received R50.7 billion in government bailouts between 2007 and 2022. ALSO READ: Has SAA turned the corner or is it flying too close to the sun? Routes and aircraft SAA currently serves 17 destinations, including two intercontinental routes to Perth in Australia, and São Paulo in Brazil. In January this year it extended services to Dar es Salaam in Tanzania and Lubumbashi in the Democratic Republic of Congo, bringing its total coverage to 17 destinations in 12 countries. Through the Star Alliance with 25 other member airlines, it provides services to 192 countries. In the 2024 financial year it operated just 10 aircraft serving 15 destinations. The number of destinations increased 42% over the last financial year, with new flights into Africa and flights to São Paulo from both Johannesburg and Cape Town. Earlier this year it expanded its fleet to 20, announcing plans to expand this further to 25 before yearend. This compares with its fleet of 49 aircraft in 2019, prior to being placed in business rescue. The airline was taken out of business rescue in 2021. The airline's waning financial position was aggravated by the Covid shutdowns in 2020, resulting in the suspension of services to long-haul destinations such as London, New York and Hong Kong. ALSO READ: SAA quietly lifts off as load factors show signs of recovery 'Strategic reconstruction' 'These results detail 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,' says Group CEO John Lamola. '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'. The latest financial results mark the last of the outstanding audits from the business rescue period, with all prior year adjustments now resolved. A case in point is R431 million recognised as a prior year adjustment to retained earnings rather than sundry income in the current year. This amount relates to business rescue creditor obligations. ALSO READ: SAA heading for crash unless equity partner comes on board Audit Health Plan To strengthen its financial reporting, SAA says it has launched a programme called Audit Health Plan to standardise key controls, expand internal audit capacity and strengthen collaboration with external auditors. 'After six consecutive audits in three years, SAA is firmly back on track to meet all statutory reporting deadlines, and to devote its efforts towards improved audit outcomes,' says the company in a statement. Despite the loss for the year, Lamola believes SAA is on the recovery track. 'We have strengthened the channels of our revenue streams and cost containment measures; we have a debt-free, asset-rich balance sheet that is supporting the steady growth of the airline and the recovery of SAA as a global aviation brand.' This article was republished from Moneyweb. Read the original here.
The Citizen
24-06-2025
- Automotive
- The Citizen
When will Johannesburg's M1 be painted?
Johannesburg Roads Agency is responsible for the section of the M1 between Ormonde in the south and Corlett Drive. The M1 highway running through the heart of Johannesburg is earmarked for a fresh lick of paint. Driving along the strip of road has become hazardous, with motorists noting faded road markings, overgrown verges and poor lighting at night. While the latter issues are the responsibility of other municipal entities, Johannesburg Roads Agency (JRA) touched on their plans and challenges in painting the busy road. No set timelines JRA confirmed plans were in place to paint a section of the M1, but could not give set deadlines. 'We do have plans to paint M1 South from Corlett Drive to Shakespeare Avenue. We were waiting for the appointment of the contractor and painting material,' JRA Head of Regional Operations Khaya Gqibitole told The Citizen. JRA's jurisdiction over the M1 stretches from the Shakespeare Avenue bridge in Ormonde to Corlett Drive near Melrose Arch. The M1 is not the sole responsibility of JRA, with the entity explaining that the section from the Buccleuch interchange up until Corlett Drive lies with the Gauteng Department of Roads and Transport (GDRT). The provincial body was contacted about their plans for their strip of the M1, but did not respond to multiple email requests. Lane by lane The deluge of cars on one of the busiest stretches of road in Johannesburg was listed as the primary reason road markings have been neglected for years. 'The biggest challenge on the M1 is the volume of traffic, one lane closure during the week can result in a massive traffic backlog, and this applies to both carriageways,' Gqibitole explained. Breaking the project into workable pieces to minimise the inconvenience caused to motorists is JRA's preferred method of approach. 'We are planning to paint some of the sections, like the right lane, on weekends and do the middle and left lanes during the week to avoid prolonging the project,' Gqibitole added. The city's last big spend on the M1 was R210 million on a bridge and stormwater revamp in 2015 and a R169 million rehabilitation of the famous double-decker section completed in 2020. NOW READ: City Power explains why it charges some customers more than others
IOL News
08-05-2025
- Health
- IOL News
Preschoolers are still without water to wash their hands
Too many South African children are unable to wash their hands as only 53% of Early Childhood Development (ECD) centres have piped water, electricity, and flushing toilets, while 8% have none at all. This is because, despite a record R210 million government pledge to upgrade these centres over the next two years, basic infrastructure remains severely lacking. Deb Zelezniak, CEO of the Santa Shoebox Project, warns that South Africa risks undermining the lifesaving power of handwashing unless urgent steps are taken to ensure access to clean, safe water in early learning spaces. 'Children constantly touch surfaces and objects, picking up germs as they go,' she explains. 'Without proper hand hygiene, those germs can lead to dangerous illnesses like diarrhoea and respiratory infections - two of the leading causes of death among South Africa's under-fives. Handwashing with soap can cut diarrhoea rates by up to 40% and respiratory infections by up to 25%.' Beyond health concerns, Zelezniak highlights the deeper developmental consequences: 'Research shows that poor water and sanitation infrastructure hinders a child's cognitive, language, and motor development, with long-term effects on their educational attainment.' While efforts to register and upgrade ECD centres are underway, many facilities remain stuck in a vicious cycle. 'Centres that can't afford the water and sanitation improvements needed for registration are locked out of the very funding that could help them upgrade,' she says. 'Instead, they rely on rainwater tanks, boreholes, or public taps- none of which guarantee consistency or safety.' Non-profits like the Santa Shoebox Project are working to renovate centres and promote better hygiene practices, but Zelezniak stresses that systemic change is essential. 'This is not just a public health issue, it's a matter of dignity, education, and the country's long-term development. Supporting ECD owners to meet registration standards must be a national priority.' 'No child should fall sick or die simply because there was no water to wash their hands,' concludes Zelezniak. Nasreen Badrodien I Santa Shoebox Project
IOL News
23-04-2025
- Politics
- IOL News
DA calls for investigation into Gauteng's R1.3 billion welfare scandal
The Democratic Alliance (DA) demands accountability as R1.3 billion in irregular expenditure cripples Gauteng's welfare system. Vulnerable citizens suffer while officials protect cadres and ignore Auditor-General warnings. The Democratic Alliance (DA) is calling for urgent accountability after irregular expenditure within the Gauteng Department of Social Development surged to over R1.3 billion, severely affecting welfare services to the province's most vulnerable citizens. An additional R210 million in irregular expenditure was incurred between April and December 2024, despite repeated warnings from the Auditor-General. No investigations have been initiated, and officials and politicians continue to act with impunity. 'Despite the repeated warnings of the Auditor-General, no investigations have been launched into the Department's financial mismanagement, nor has any consequence management been implemented. Officials and politicians act with impunity, as if the law does not apply to them,' said Alan Fuchs, DA Gauteng Member of the Standing Committee on Public Accounts (SCOPA). The DA has accused Premier Panyaza Lesufi and Social Development MEC Faith Mazibuko of failing to provide proper oversight and protecting politically connected individuals by withholding forensic reports that could expose widespread corruption. Meanwhile, the Portfolio Committee on Social Development in March launched a three-day oversight visit to Gauteng to investigate the NPO funding crisis. Their mission comes in response to media reports and public outcry over the department's budget cuts, particularly in light of ongoing national fiscal constraints that have filtered down to provincial departments. Committee Chairperson Bridget Masango emphasised that any issue affecting the poor and vulnerable 'will always get our utmost attention.'
