SAA profits up 77%

SOUTH African Airways has announced a nett profit of R782 million for the 2010-2011 financial year, a 77% increase on the restated figure of R442 million achieved the previous year.

Announcing the results the airline said that the positive results were achieved despite the fact that the market is still recovering from the effects of the global financial crisis and as well as the fluctuating Brent crude price.

SAA ceo Siza Mzimela said the results are due to improved internal governance structures, tight cost control, improved efficiencies within the business, as well as product enhancement and innovation. She added that these factors have ensured that the airline is well positioned for growth.

“SAA will continue to expand its network, providing customers with further global reach and connecting key African hubs to ensure its place as the largest carrier in Africa,” said Mzimela.

Malusi Gigaba, minister for the Department of Public Enterprises added that as a State Owned Enterprise (SOE), SAA has a mandate to grow as a business while maintaining its ”critical strategic” role in the development of the country and as the continent as a whole.

”It is crucial that SAA continues to support matters of relevance from a shareholder perspective and enhancing the state’s policy objectives, such as the airlift strategy which seeks to regulate air transport in support of the tourism growth strategy; and the employment creation objectives of New Growth Path,” said the minister.

Key focus areas for SAA going forward include substantially growing its African network to ensure prominence on the continent and fulfilling its goal to boost economic growth through the sustainable nurturing of the travel and tourism industry.

New routes to be launched are Ndola, Kigali, Bujumbura, Cotonou and Abidjan and China. Mzimela said that although it will initially operate the route to China on a thrice weekly basis, the airline hopes to secure a daily service soon.

Mzimela said that the airline will also focus on the fleet renewal of the airline, but reiterated that it will do so by securing finance and not through government financing.