Three years after its relaunch, South African Airways (SAA) is celebrating a growth trajectory that it considers ‘continuous and sustainable’. The airline, which went into business recovery in December 2019, shortly before the start of the Covid-19 pandemic, resumed operations on 23 September 2021 after an in-depth restructuring and an 18-month hiatus.
At the time, SAA resumed operations with just six aircraft and six routes, showing a significant reduction compared to its previous operation.
However, in a recent message to the company’s employees and partners, interim CEO Professor John Lamola emphasised the progress made since then, revealing that between August 2022 and August 2024, the company doubled its air network and tripled the size of its fleet, achieving 400% growth in passenger revenues over that period.
Despite this expansion scenario, SAA faces challenges that still threaten its full recovery. Revenue growth, which reached 96% in the financial year 2022/23 and 49% in 2023/24, resulted from the expansion of the fleet and the reopening of routes, including destinations such as Mauritius, Perth in Australia and São Paulo in Brazil.
Even so, the CEO recognises that this growth is taking place from a low base, as the global aviation industry was emerging from the deep crises caused by the pandemic.
The company, which had around 500 employees at the time of its relaunch, now employs around 1,200 people, including 140 pilots. However, difficulties in the global supply chain continue to affect the company.
The Covid-19 pandemic has caused severe disruption to aircraft manufacturers, and SAA is currently facing delays in the delivery of three aircraft planned for last year. In order to mitigate the impact of these failures, the company has resorted to leasing aircraft from Sun Express, owned by Lufthansa and Turkish Airlines, to meet demand during the December high season.
Interim CEO, Professor John Lamola
SAA’s strategy, according to Lamola, aims to ensure that the company achieves profitability by operating on its own revenues, although fleet growth and increased routes will require continued capital investment.
The company’s leadership has been discussing possible strategic equity partnerships, although these remain the prerogative of the shareholder.
In addition, the company recently celebrated the transfer of shareholder responsibility to South Africa’s National Department of Transport, a move that, according to Lamola, will strengthen the company’s focus on providing world-class air transport both within and outside the country.
Future prospects include the launch of new routes, most notably to Lubumbashi in the Democratic Republic of Congo and Dar es Salaam in Tanzania, scheduled for November 2024.
These routes are seen as part of a broader strategy to consolidate SAA’s position in the African market, responding to the growing demand for connections within the continent.
However, expanding the air network carries considerable risks, especially in a global scenario where commercial aviation continues to face uncertainty and fluctuations in demand.
Lamola reiterated the need to maintain a robust financing strategy, pointing out that SAA has managed to maintain a favourable reputation with both national and international financial institutions, which has facilitated its ability to rebuild the fleet.
Despite the adversity, SAA has focused on its ability to reinvent itself and its importance as an instrument of economic and social development for South Africa.
Lamola emphasised that the company is focused on promoting tourism, trade and the transformation of the aviation sector, while at the same time seeking to maintain commercial viability.
However, its sustainability will depend not only on its ability to generate profits, but also on securing a stable funding base, which is necessary to keep pace with global competition and the increased demand for quality services.
SAA’s future, although promising in the light of the last three years, will continue to be shaped by its ability to manage these challenges with pragmatism and innovation.
Semanário Económico
