SAA cancels Airbus contracts

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A view of an Airbus A350 on day four of the Farnborough International Airshow in Farnborough, England.

JOHANNESBURG - South African Airlines is cancelling its contract to supply 10 Airbus A320 aircrafts.

This comes as the company tries return the national carrier back to profitability.

The cancellation requires board approval and is expected to be finalised within days.

SAA’s losses dropped 43 percent in this financial year, despite a slump in revenue. Expenditure is 9 percent lower this year due to cost-savings and low oil prices.

SAA still plans to save R2-billion over the next three years, through negotiating of leases and job cuts.