SA Express will only be profitable in next financial year, CE Siza Mzimela says
SA Express’s operations were hit in May when the CAA suspended its aircraft operator’s licence for about two months and grounded nine of its 21 aircraft
State-owned regional airline SA Express expects to continue its loss-making trajectory in the year to end-March 2019 but to return to profitability in the next year. The airline is projecting a loss of R669m in 2018-2019 and net profits of R144m and R185m in 2019-2020 and 2020-2021 respectively. Revenue over this period is projected at R847m in 2018-2019 and R1.9bn and R2.1bn in the outer two years. The airline is technically insolvent, with liabilities exceeding its assets, and has relied on a government guarantee of R2.8bn of which R1.249bn has been used. SA Express’s operations were hit in May when the Civil Aviation Authority suspended its aircraft operator’s licence for about two months and grounded nine of its 21 aircraft. The return to profitability will be the fruit of the turnaround strategy being implemented by the new board and the introduction of new regional airlines, SA Express interim CEO Siza Mzimela said in parliament on Friday. Mzimela briefed a joint meeting of th...
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