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SAA rescue plans now seem outdated as forecasts for industry deteriorate further

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In our opinion, SAA's funding request to Treasury cannot be justified and if the updated factors were taken into account, says OUTA.
In our opinion, SAA's funding request to Treasury cannot be justified and if the updated factors were taken into account, says OUTA.
Gallo Images/Jacques Stander

Forecasts for airline passenger demand used by business rescue practitioners in their plans for a "new" South African Airways (SAA) are now outdated and paint a much more optimistic view for the sector on the African continent.

At the time when the rescue plan was accepted by creditors in June this year, the International Air Transport Association (IATA) anticipated airline revenue levels would be 60% of what they were during the 2019 calendar year within two years, and for demand to have returned to 2019 levels only by 2025. 

The latest forecasts from the association, however, now anticipate an even weaker-than-expected recovery.

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