SAA losses continue to skyrocket, hitting R5.7bn
The national carrier’s net loss is almost R3bn worse than budgeted
South African Airways (SAA) continued its track record of losses in the 2017-18 financial year, notching up a worse than expected net loss of R5.7bn. The Treasury released SAA’s fourth-quarter and annual results after a fierce debate in Parliament’s finance committee over whether they should be discussed behind closed doors or in public. Eventually, the committee meeting — at which SAA CEO Vuyani Jarana and executives and board members were due to brief MPs — was cancelled by acting committee chairwoman Thandi Tobias, despite strong opposition from the DA. The Treasury release showed that SAA’s net loss of R5.7bn for 2017-18 was significantly (R2.9bn) worse than budgeted as sales plunged on domestic routes 21%, international routes 11% and regional routes 6%. The loss was attributed to lower passenger numbers; a lower average fare due to increased competition and negative sentiment; higher operating costs driven by an increase in fuel costs; and higher maintenance costs. Earlier on ...
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