SAA will take off – Malusi Gigaba

2014-02-03 11:04

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Loss-making national carrier, SA Airways, will return to profitability, says Public Enterprises Minister Malusi Gigaba.

“Last year, we said we expected the airline would continue to make losses over the next three to five years,” Gigaba told The New Age business briefing in Johannesburg today.

“But we will turn the corner as we move to improve and ensure that the turnaround strategy is implemented.”

SAA suffered a loss of R900 million in 2012/13, it was announced on Thursday.

Government has made a guarantee to SAA to enable it to operate.

The airline reported a loss of R1.25 billion in 2012.

Total revenue rose to R27.1 billion in the year under review from R23.9 billion in the previous financial year. This was due to increases in airfares, passenger revenue and capacity.

Airfares increased by 7%, which was partially driven by the weakening of the rand.

Gigaba said the figures showed an improvement with more than R1 billion saved in operating costs.

Gigaba unveiled a 12-year turnaround strategy for SAA in September last year to consolidate its routes and upgrade its fleet.

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