SAA has posted a net loss of R1,085bn for the 2007/08 financial year, down 23% from last year. The loss is attributed to once-off restructuring costs of R1,35bn. Were it not for these costs it would have posted a profit of R123m.
SAA achieved a 9% increase in revenue, totalling, R22,5bn but there was a 1,3% decline in passenger number. This, says ceo, Khaya Ngqula, is a good result considering that SAA decreased its capacity by 30% when it grounded six of its aircraft.
SAA cfo, Kaushik Patel, says this outcome is a result of “pain, sacrifice and commitment”. SAA cut its costs in the last financial year ending March 2008 by R1bn through its restructuring plan.
Khaya Ngqula, SAA ceo, says the airline has reported “phenomenal” results and has also done extremely well when compared to the performance of the global airline industry. He said SAA is currently above target in the current financial year, and although it will be tough, he is confident a profit will be achieved.
SAA chairman, Jakes Gerwel, says there are still stormy days ahead but the future looks positive. “We have turned the airline around from a financial point of view,” he said.
