SAA back to sustainable profitability in 2019-20
Consultancy firm Seabury, which has been appointed to evaluate the South African Airways (SAA) turnaround strategy, has concluded that the financially troubled, state-owned airline will only return to a positive operating cash flow position by April 2018, and to sustainable profitability in the 2019-20 financial year. However, this will depend on the successful implementation of the turnaround strategy. SAA is forecast to make a loss of R4.8bn for 2016-17. "Cost and revenue initiatives amounting to about R6.8bn over a five-year period have been identified; R2.88bn of these are expected to be realised in the 2017-18 financial year," SAA executives told members of Parliament’s standing committee on finance on Wednesday.
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