SAA reports almost R2bn in losses

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STOCK IMAGE: SAA, South African Airways, ORT Airport,Oliver Reginald Tambo International Airport.

 

 

JOHANNESBURG – South African Airways (SAA) is in a dire financial state.

Treasury has released SAA’s fourth-quarter financial results.

It shows the company has lost R1,84-billion, with international sales declining by 11 percent and domestic revenue by 21 percent.

READ: SAA&39;s turnaround strategy in Parliament cancelled

One Analyst said the company simply can&39;t be saved.

Free Market Foundation executive director, Leon Louw said the company cannot be saved. “It’s not a turnaround strategy... it can&39;t be saved. It is constantly getting smashed and it now becomes a serious worry.. The question is, is SAA in fact safe? The easiest thing to cut is maintenance, but as to its finances, it is not being capitalised. Every time a plane takes off, it makes more losses. There is no money for new planes, It should actually be wound down."