SAA To Face MPs Over Financial Results And Audit Findings Amid Leadership Shake-Up

South African Airways (SAA) is set to appear before Members of Parliament (MPs) on Tuesday to account for its latest financial performance and audit outcomes.

The national carrier will brief the Portfolio Committee on Transport in a session that comes shortly after a leadership shake-up, including the resignation of group CEO Professor John Lamola and three non-executive directors earlier this month.

The developments arrive as the airline continues to grapple with financial challenges, despite reporting profits in the past two financial years.

SAA Financial Results Raise Sustainability Concerns

SAA has recorded a net profit of R155 million, alongside an operating profit exceeding R300 million. However, a significant portion of this profit has been attributed to once-off asset disposals rather than sustained operational performance.

While the return to profitability marks a shift from previous years of losses, concerns remain about the airline’s long-term financial viability. The briefing is expected to focus on whether these gains can be maintained without reliance on non-recurring income streams.

The airline exited business rescue in April 2021 after a 17-month restructuring process that led to widespread job cuts. Since then, it has been working to rebuild operations and restore financial stability.

Leadership Resignations Add To Uncertainty

Professor John Lamola’s resignation, announced on 10 April, has intensified scrutiny around SAA’s direction. He is expected to step down at the end of April, four years after guiding the airline out of business rescue.

No official reason has been provided for his departure, leaving unanswered questions about the circumstances surrounding the leadership changes.

The exit of Lamola, along with three board members, comes at a time when the airline is navigating ongoing financial pressures.

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In addition to SAA’s presentation, the Auditor-General is scheduled to brief MPs on the airline’s latest audit and annual report.

The findings are expected to provide further insight into SAA’s financial health, governance, and compliance, offering Parliament a clearer picture of the challenges facing the state-owned carrier.