Latest news with #JohnLamola
The Citizen
5 days ago
- Business
- The Citizen
SAA slips back into loss as fuel and plane leasing costs spiral
Reports a R352m loss for the last financial year after a R210m profit in 2024. The recovery of the airline as a global aviation brand is on track, says its CEO. Picture: Moneyweb Soaring fuel prices and a 30% increase in plane leasing costs pushed airline operator South African Airways (SAA) into a R352 million loss for the year to March 2025, despite a 23% increase in revenue to R7 billion. This follows a R210 million profit the prior year. Rand volatility resulted in currency translation losses of R415 million. The airline was hit with several external shocks, such as a 46% increase in fuel costs to R1.9 billion due to the Ukraine conflict and a global shortage of aircraft which pushed up leasing costs by 30%. Delays in the delivery of budgeted aircraft had a negative impact in revenue and earnings before interest, tax, depreciation and amortisation (Ebitda), which reversed from a positive R436 million in 2024 to a negative R90 million in 2025. The cash position remains strong at R1.4 billion at year-end. It also has zero borrowings and R6.4 billion in equity. The airline received R50.7 billion in government bailouts between 2007 and 2022. ALSO READ: Has SAA turned the corner or is it flying too close to the sun? Routes and aircraft SAA currently serves 17 destinations, including two intercontinental routes to Perth in Australia, and São Paulo in Brazil. In January this year it extended services to Dar es Salaam in Tanzania and Lubumbashi in the Democratic Republic of Congo, bringing its total coverage to 17 destinations in 12 countries. Through the Star Alliance with 25 other member airlines, it provides services to 192 countries. In the 2024 financial year it operated just 10 aircraft serving 15 destinations. The number of destinations increased 42% over the last financial year, with new flights into Africa and flights to São Paulo from both Johannesburg and Cape Town. Earlier this year it expanded its fleet to 20, announcing plans to expand this further to 25 before yearend. This compares with its fleet of 49 aircraft in 2019, prior to being placed in business rescue. The airline was taken out of business rescue in 2021. The airline's waning financial position was aggravated by the Covid shutdowns in 2020, resulting in the suspension of services to long-haul destinations such as London, New York and Hong Kong. ALSO READ: SAA quietly lifts off as load factors show signs of recovery 'Strategic reconstruction' 'These results detail a phase of intense uncertainty in the resuscitation of SAA as the assumption of the company's control by the strategic equity partner was awaited,' says Group CEO John Lamola. 'Since then, we have entered a period of structured and strategic reconstruction of the business, focusing on institutionalising robust governance and management systems, whilst implementing plans on aircraft fleet and route network expansion and elevation of customer experience'. The latest financial results mark the last of the outstanding audits from the business rescue period, with all prior year adjustments now resolved. A case in point is R431 million recognised as a prior year adjustment to retained earnings rather than sundry income in the current year. This amount relates to business rescue creditor obligations. ALSO READ: SAA heading for crash unless equity partner comes on board Audit Health Plan To strengthen its financial reporting, SAA says it has launched a programme called Audit Health Plan to standardise key controls, expand internal audit capacity and strengthen collaboration with external auditors. 'After six consecutive audits in three years, SAA is firmly back on track to meet all statutory reporting deadlines, and to devote its efforts towards improved audit outcomes,' says the company in a statement. Despite the loss for the year, Lamola believes SAA is on the recovery track. 'We have strengthened the channels of our revenue streams and cost containment measures; we have a debt-free, asset-rich balance sheet that is supporting the steady growth of the airline and the recovery of SAA as a global aviation brand.' This article was republished from Moneyweb. Read the original here.
IOL News
5 days ago
- Business
- IOL News
SAA swings into R354 million loss but claims improved financial health
The latest financial statements were the last of the outstanding audits from the business rescue period, with all prior-year adjustments now resolved. Image: IOL South African Airways (SAA) has declared a loss of R354 million for the 2023/24 financial year while simultaneously announcing a "debt-free, asset-rich balance sheet" that's poised to support its recovery as a global aviation brand. CEO John Lamola portrayed these results as a snapshot of resilience, highlighting the airline's notable increase in revenue and operational efforts despite external pressures. In the audited financial results reflecting the airline's second year of operations since its exit from business rescue in April 2021, SAA on Thursday reported that it had generated revenue of R7 billion, a 23% year-on-year increase for the group. However, currency fluctuations and various 'external' factors impacted operations, resulting in a net loss of R354m for the year. The group reported a profit of R210m the previous year. The latest financial statements were the last of the outstanding audits from the business rescue period, with all prior-year adjustments now resolved. These include SAA recognising a gain of R431m in the current year by de-recognising business rescue credit obligations and recording the amount as sundry income. The group's auditors said this amount should have been recognised as a prior-period adjustment to retained earnings, instead of sundry income in the current year. Due to this correction, the airline's net result was restated from a small profit of R60m to a loss of R371m. Lamola said the results detailed a phase of intense uncertainty in the resuscitation of SAA as the assumption of the company's control by the strategic equity partner was awaited. 'Since then, we have entered a period of structured and strategic reconstruction of the business, focusing on institutionalising robust governance and management systems, whilst implementing plans on aircraft fleet and route network expansion and elevation of customer experience,' he said. SAA said that outside of a R415m foreign-currency translation loss because of the rand's volatility, the final result also reflected external factors including the impact of Russia's invasion of Ukraine, which pushed jet fuel costs from R1.3bn to R1.9bn during the period. It was also hit by a global shortage of aircraft, which increased leasing costs by more than 30%. These elements negatively affected revenue and earnings before interst tax depreciation and amortisation (EBITDA) , with the latter declining from a positive R436m in the prior year to a negative R90m. The group noted that its cash and cash equivalents remained strong at R1.4bn with zero borrowings and R6.4bn in equity. 'The FY2023/24 results reflect significant progress in SAA's financial health. We have strengthened the channels of our revenue streams and cost containment measures,' Lamola said. The number of flights flown also jumped by 42%, with a significant increase in flights into Africa and routes from Johannesburg and Cape Town to Sao Paulo starting in the second half of the financial year. SAA said to improve its financial reporting, the board launched an Audit Health Plan that standardises key controls, expands internal audit capacity and improves collaboration with external auditors. BUSINESS REPORT
Time Out
12-06-2025
- Business
- Time Out
SA's new domestic flight developments signal good news for travellers?
South Africans have long struggled with sky-high airfares when travelling between major cities. The situation worsened with the collapse of several airlines during the COVID-19 pandemic, including Comair, which had long been one of the country's most successful and reliable carriers. Over the years, domestic prices have remained steep, and flight options have been scarce. However, change appears to be looming as Mango signals its potential return. A quick fare check for return flights between Cape Town and Johannesburg, for example highlights the current cost landscape. FlySafair comes in cheapest at about R2,824, while SAA averages R3,233. Lift is priced at approximately R3,665. Airlink and CemAir are the most expensive, with both pricing return tickets at over R4,000. (The flight searches were conducted for travel between 9–16 July, with similar departure and arrival times and with none to limited luggage ancillary options chosen.) This makes the ongoing battle in South Africa's domestic skies promising as it would bring more choice and potentially lower prices for travellers. South African Airways (SAA), the national carrier, is expanding its fleet and route network. The news follows the national carrier distancing itself from its former low-cost subsidiary, Mango Airlines, which is in the final stages of business rescue. Mango was grounded in July 2021 and subsequently placed under business rescue. Though still technically a subsidiary of SAA, the two entities have operated independently since then. SAA has since released a statement clarifying that it has no control or involvement in Mango's operations, financial obligations, or the ticket refund process, which is still underway for unflown flights booked before the airline suspended services. The revival of Mango, which once targeted the frequent domestic business traveller, has been slow and mired in disputes. Still, a new investor is reportedly close to acquiring the airline with plans to relaunch it. Whether Mango re-emerges as a strong competitor remains to be seen. What's clear, however, is that SAA is charting its own course. The state-owned airline, which exited its business rescue process in 2021, is actively rebuilding its operations, with a new aircraft added to its fleet announced this week. SAA hopes to add five more aircraft to its fleet during 2025, a move intended to increase seat availability and reduce pressure on prices for both domestic and regional travel. 'This is a remarkable achievement considering that just over three years ago, the airline emerged from business rescue with just six aircraft. Since 2021, the team at SAA has worked strategically and consistently to grow the fleet and route network sustainably. These additional aircraft will enable SAA to continue fulfilling our promise to add seat capacity in both the domestic and regional markets and thereby contributing to the affordability of passenger air travel, ' says Professor John Lamola, interim CEO at SAA. SAA is also set to reintroduce and expand several key domestic and regional routes, including: Johannesburg–George (launching April 2026) Johannesburg–East London (date to be confirmed) Cape Town–Durban (date to be confirmed) Johannesburg–Gaborone (launching October 2025) Cape Town–Mauritius (seasonal flights launching November 2025) For South African travellers, particularly frequent flyers and holidaymakers, the increased competition and route expansion couldn't come at a better time. As the airline industry regains momentum, more flights and better fares may finally be within reach. FlySafair's CMO, Kirby Gordon notes that while increased competition can bring prices down, it's not a one-size-fits-all solution. 'Competitive pricing is huge,' he explains, 'but some routes simply can't support more than one player. On others, adding flights or larger aircraft and dropping fares can boost demand — but not always. Undoubtedly, this is where the opportunities and risks exist. Gordon adds that the introduction of new airlines or additional capacity, even from existing players, inevitably puts downward pressure on prices. 'Airlines are price-takers, not price-setters,' he says. 'If there's too much supply and yields drop below sustainable levels, someone will eventually shrink or exit the market as it corrects itself.'
Zawya
08-05-2025
- Business
- Zawya
South African Airways investigates cyber incident disrupting systems
South African Airways (SAA) has reported a cyber incident that began on Saturday, 3 May 2025, causing temporary disruptions to its website, mobile app, and internal systems. The airline activated its disaster management and business continuity protocols to minimise disruption, ensuring continued customer service via contact centres and sales offices. Normal system functionality was restored the same day. SAA has enlisted independent digital forensic investigators to determine the cause and scope of the breach, which may involve external cybercriminal activities. The airline has also reported the incident to the State Security Agency (SSA), the South African Police Service (SAPS), and the Information Regulator under the Protection of Personal Information Act (POPIA). An investigation is ongoing to determine if any data was accessed or exfiltrated. SAA will notify affected parties directly if a data breach is confirmed. Professor John Lamola, Group CEO of South African Airways, says: "The security and integrity of our business systems and the protection of the consumer data entrusted to us remain our highest priority. In response to the cyber incident that began on 3 May, we acted swiftly to contain the disruption, restore services, and initiate a comprehensive investigation. Our robust business continuity measures ensured operational stability, particularly for our valued customers. "I want to assure all stakeholders, including our partners, customers, and dedicated employees, that we are taking every necessary step to determine the root cause of this incident, strengthen our security framework, and mitigate any potential risks. SAA remains committed to delivering safe, reliable, and resilient service."
IOL News
07-05-2025
- Business
- IOL News
Investigation underway into SAA cyberattack
SAA confirmed it was impacted by a significant cyberattack that began on Saturday. The breach temporarily disrupted access to the airline's website, mobile application, and several internal operational systems. Image: IOL South African Airways (SAA) says the immediate activation of its disaster management and business continuity protocols successfully contained a cyberattack incident and minimised disruption to core flight operations. SAA on Tuesday confirmed it was impacted by a significant cyberattack that began on Saturday. The breach temporarily disrupted access to the airline's website, mobile application, and several internal operational systems. Swift action successfully contained the incident, minimised disruption and ensured the continued functionality of essential customer service channels, such as the airline's contact centers and sales offices, SAA said. 'Normal system functionality across all affected platforms was restored later the same day,' SAA said. SAA management initiated an investigation conducted by independent digital forensic investigators to determine the root cause and full scope of the incident and explore the possibility that the disruption resulted from external cybercrime activities. 'In line with its commitment to regulatory compliance and transparency, SAA has undertaken all reasonable and lawful steps as a National Key Point, including formally reporting the incident to the State Security Agency (SSA), South African Police Service (SAPS) for criminal investigation and notifying the Information Regulator of South Africa as a precautionary measure under the Protection of Personal Information Act (POPIA),' SAA said. Regarding the potential impact on data, the preliminary investigation is assessing the full extent of the incident and actively working to determine if any data was accessed or exfiltrated. SAA group CEO John Lamola added: "The security and integrity of our business systems and the protection of the consumer data entrusted to us remain our highest priority. In response to the cyber incident that began on May 3, we acted swiftly to contain the disruption, restore services, and initiate a comprehensive investigation. Our robust business continuity measures ensured operational stability, particularly for our valued customers. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕
