SAA Still A Long Way From Being Profitable, Warns Transport Minister Barbara Creecy

South African Airways (SAA) remains far from achieving financial sustainability, according to Transport Minister Barbara Creecy, who delivered a frank assessment of the national carrier’s performance.

Addressing Parliament’s Transport Committee on Tuesday, Creecy said it was “unacceptable” that SAA had received two consecutive audit disclaimers from the Auditor-General (AG), the most severe audit finding possible.

The minister appeared alongside SAA’s board and executive team to present the airline’s 2024/25 annual report, outlining ongoing financial challenges despite efforts to stabilise operations following its exit from business rescue five years ago.

SAA Financial Performance And Profitability Challenges

Creecy acknowledged that while there have been some gains in passenger volumes and revenue, the airline remains significantly short of profitability targets.

“While there were some improvements in passenger numbers and in passenger revenue, I think that we’re still a long way from being a profitable entity, which is where we would want to be,” she said.

SAA reported a R150 million profit for the financial year under review. However, this was largely attributed to the sale of its Heathrow Airport landing slot rather than core operational performance.

The airline continues to face pressure as it attempts to rebuild market share and restore its position within South Africa’s aviation sector.

Auditor-General Flags Governance And Sustainability Concerns

The Auditor-General reiterated concerns about the airline’s financial health, stating that the company remains a “going concern with material uncertainties” after once again issuing a disclaimer audit opinion.

This marks a continuation of serious governance and reporting shortcomings within the airline and its associated entities.

While there was some progress noted, including SAA subsidiary Air Chefs improving from a disclaimer to a qualified audit outcome, the AG indicated that other divisions within the group have shown little to no improvement.

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The findings highlight persistent structural and financial challenges as SAA continues its recovery journey in a highly competitive aviation market.