SAA’s financial losses total more than R10 billion over the past two years, according to documents submitted to Parliament.
The airline’s business rescue practitioners and Public Enterprise Minister Pravin Gordhan briefed the Standing Committee on public Accounts on Friday. Ahead of the meeting, SAA gave members of Parliament the annual financial statements for the year ended March 2018, and the draft annual financial statement for the year ended March 2019.
According to the documents, SAA reported a net loss of R5.4 billion in 2018, and a R5.04 billion loss in 2019. The restated losses for 2017 came to R5.3 billion.
According to the draft 2019 annual statement, the group’s net cash position was slightly better at R1.95 billion, than the previous year’s R1.64 billion.
After multiple bailouts from government, the airline was finally placed in business rescue in December last year. The plan from the business rescue practitioners is yet to be finalised.
The business rescue practitioners in March initiated a voluntary retrenchment process, but a Labour Court ruled this was unfair in the absence of a business rescue plan.
With Covid-19 grounding the entire aviation industry in the country, there is speculation of consolidation of the industry. Privately-owned airline Comair has also filed for business rescue, as the impact of Covid-19 has worsened its prospects, Fin24 previously reported.