Material uncertainties, including whether its strategic equity partnership with the Takatso consortium will get the necessary approvals, "may cast significant doubt on the South African Airways (SAA) group's ability to continue as a going concern", according to a report by the Auditor-General.
The report, presented to Parliament on Tuesday, contains financial statements for the year to end-March 2018, but also looks at the airline’s current situation. The 2018 financial results weren’t released before because the auditors withheld their audit opinion, as SAA’s status as going concern was at significant risk. This resulted in the group being placed in business rescue in December 2019.
The report shows that the SAA group – which consists of SAA and its subsidiaries Mango (currently in business rescue and looking for a buyer), SAA Technical and Air Chefs - made a loss of R5.4 billion in 2017/18, with total income of R29.4 billion. This was lower than the R30.7 billion earned in the previous year.