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From turbulence to take-off: Transport minister reveals SAA is flying back into profit and expansion

From turbulence to take-off: Transport minister reveals SAA is flying back into profit and expansion

The Herald12 hours ago
Transport minister Barbara Creecy has painted an optimistic picture of the aviation sector's economic prospects, announcing that South African Airways (SAA) is on track to significantly boost its contribution to the country's GDP and employment.
Delivering her department's budget vote speech in parliament, Creecy said a study by Oxford Economics Africa confirmed that SAA contributed R9.1bn to South Africa's GDP in 2023/2024, a figure projected to more than triple to R32.6bn by 2029/2030.
'Over the same period, the airline's operations are expected to support 86,700 jobs, up from the current 25,000, demonstrating its growing role as a national employer and economic catalyst,' said Creecy.
Once plagued by allegations of corruption, mismanagement and state capture, the national carrier appears to be staging a dramatic turnaround.
'The airline has concluded three out of four outstanding audits and reported a profit of R252m for the 2022/2023 financial year, which is the first profit since 2012. Now operating independently and no longer reliant on government guarantees, SAA is self-funding its operations and fleet growth, while remaining open to a strategic equity partner as part of its long-term restructuring,' she said.
Creecy said SAA is pursuing a 'bold route expansion strategy' to improve intra-African connectivity and global reach.
'New regional routes from Johannesburg and Cape Town aim to boost intra-African connectivity, supporting tourism and trade. The airline has begun a measured fleet expansion to meet growing demand, reinforcing its role as a connector of economies across the continent and beyond.
'SAA is well-positioned to drive economic value through expanded international services, job creation, and increased contributions to tourism and trade,' she said.
The airline has also been internationally recognised, being ranked the fourth-best airline in Africa in the 2025 World Airline Awards.
In the global rankings, it moved up two places from 69th in 2024 to 67th in 2025 out of more than 325 airlines evaluated.
Looking ahead, Creecy said the department expects 42-million passengers and 1.2-million tons of air freight to move through the Airports Company South Africa (Acsa) network by the end of the current political term.
To prepare for this growth, she said Acsa has allocated R21.7bn for infrastructure development.
'This will improve facilities for passenger safety and comfort over the medium term and build a new freight terminal at OR Tambo International Airport,' she said.
'In addition, we are fast-tracking projects to ensure reliable availability of jet fuel to all airlines at all our airports, as well as the general upkeep and upgrading of the facilities and technologies at each of our airports to improve security of passengers and cargo, as well as the convenience of airport users.'
Creecy also addressed concerns about the Air Traffic and Navigation Services (ATNS), following widespread operational challenges last December.
'I appointed a panel of experts to advise on the root causes of problems at the entity and necessary remedial measures,' said Creecy.
In January, the expert team found 'acute shortages of critical staff,' outdated navigation and surveillance systems, and systemic weaknesses in safety management.
'Since February 2025, 37 successful recruitments have been made in key areas including air traffic controllers, investigation and safety specialists, engineering instructors and simulator programmers,' said Creecy.
She added the aviation sector is on track to boost tourism, economic growth and job creation.
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