Johannesburg - Troubled national airline SAA has suffered losses of up to R4.7 billion in the past financial year. SAA confirmed in its preliminary results that it was in deep financial crisis after it posted the losses in the 2014/15 financial year.
The results show the competitive environment and declining currency have led to a loss of R1.5bn, which is higher than the R374 million loss in the previous financial year.
The airline said the currency fluctuations, impairments, finance costs and other factors led to the total loss of R4.7bn. SAA said finance costs shot up from R263m to R490m.
SAA’s preliminary results were to be officially tabled in Parliament today after Parliament granted the national airline an extension for the tabling of its annual report for the 2014/15 financial year at the request of Finance Minister Pravin Gordhan.
The results were originally due in September last year. In the past 15 years alone, SAA has cost taxpayers R14bn. Gordhan confirmed early this week that SAA had posted losses of R4.7bn for the 2014/15 financial year.
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The national carrier has been requesting a R5bn loan guarantee from the Treasury.
The release of the latest results will end the stand-off on the guarantee as cabinet last week approved the appointment of the new board to be headed by controversial chairwoman Dudu Myeni.
On Tuesday opposition parties launched a scathing attack on SAA during a debate called by the EFF immediately after the question and answer session with President Jacob Zuma in the National Assembly.
The EFF, DA and other opposition parties accused the president and the ANC of running the airline into the ground.
The release of the results is also expected to become another bitter fight between the ANC and the opposition in the National Assembly.
It is expected that SAA will appear before the committees of Parliament in the coming days.
Serious blow
The results show that domestic profit contribution declined by 17 percent from R791m to R660m.
However, SAA noted the African routes, which had been healthy, also took a knock from a profit of R761m to R551m in the previous financial year.
It attributed the 28 percent decline to new low cost carriers entering the space and the Ebola virus that had hit the region in the past two years.
Gulf Airlines and East Africa posed a serious threat to the SAA business.
Despite having operating costs under control, SAA said the weakening currency had had a serious bearing on its financials.
BUSINESS REPORT