South African Airways Group has reported a return to profitability, posting a modest net surplus of 155 million rand ($9.7 million), marking a significant turnaround for the state-owned carrier as it continues its recovery from years of financial distress and restructuring efforts.
The airline itself recorded a separate profit of 30 million rand, underscoring early signs of stabilization within its core operations.
Accordign to flightglobal.com, the company disclosed the financial performance for fiscal 2024-25 – which ended on 31 March last year – during its annual general meeting on 6 February.
Its revenues increased by 36% to R8.8 billion.
South African Airways’ fleet increased to 14 aircraft during the year under consideration, and has since expanded to 19.
The airline has approval to take its fleet to 21.
South African Airways, which had been heavily loss-making, emerged from a substantial restructuring under business rescue in April 2021.
It recorded its first profit for more than a decade in 2022-23 before a turbulent 2023-24, during which increasing costs – plus a substantial accounting adjustment – meant the group posted a net loss of R354 million.
The return to profitability in the following year demonstrate that the company is “on course for a bright future,” insists group chief executive John Lamola.
“We have entered a period of structured and strategic stabilisation of the business, focusing on institutionalising robust governance and agile management systems,” he says.
“We are continuing to implement plans on aircraft fleet modernisation and route network expansion aimed at the elevation of customer experience.”
South African Airways chair Sedzani Faith Mudau says the board is committed to “strengthening governance and reinforcing public trust” in the company.
She says it intends to “improve audit outcomes”, through an audit health plan, and secure long-term financial sustainability.
South African transport minister Barbara Creecy, representing the company’s shareholder, says the carrier has finalised the last of five outstanding audits, and turned in a “modest” net profit, describing this as an “important milestone”.
