A parliamentary committee has asked for an urgent report on the finances of South African Airways (SAA). The request came in the same week the airline told staff their salaries would be late for the second month in a row, the Sunday Times reported.
In a letter dated 19 October, committee chair Mmusi Maimane asked transport minister Barbara Creecy for an update by 30 October. He said SAA employees had raised serious allegations about executive appointments and the accuracy of the airline’s financial position.
“Although these allegations are untested and the committee draws no conclusion from them, we do however deem it necessary to request an urgent update on SAA’s current financial and cash position, including the 2025/26 audit,” Maimane wrote.
Two days after the letter, finance minister Enoch Godongwana revealed that government had given the airline a billion-rand guarantee.
A staff memo from acting chief human capital officer Lourens Erasmus said salaries would be paid on different days. Ground staff and cabin crew would be paid on 27 October and pilots on 28 October. Management and specialists would follow on 30 October, and executives on 31 October.
An insider who was not allowed to speak to the media said September salaries were only paid around 2 October. The source claimed some suppliers now demand payment upfront. “SAA is running out of money, and may soon be grounded,” the source alleged.
On Friday, Maimane said he was worried about the R155m profit SAA declared in February. The auditor-general had issued a disclaimed audit opinion on those results.
“The reason I’m asking formally is because we need to interrogate the authenticity of SAA’s finances,” he said.
SAA’s accounts for the year ending March 2025 showed operating revenue of R9.26bn. Its operating costs were R9.58bn. It later emerged that the airline had received more than R1bn in government support through a share buyout deal.
In the past financial year, SAA also earned R1.1bn from selling one of its two slots at London’s Heathrow Airport. One source claimed this money was used to cover operating losses instead of growing the fleet from 16 to 21 aircraft.
SAA spokesperson Mphilo Dlamini said rising costs, especially aviation fuel, and global tensions were hurting airlines worldwide. He said these pressures led to staggered salaries for the first time in September and again in October.
“Despite the significant liquidity pressures arising from geopolitical disruptions and increased fuel costs, the airline has continued to honour its obligations to staff,” Dlamini said.
The airline said the R1bn guarantee lets it raise capital to fund its business needs. Dlamini confirmed SAA had received the committee’s letter and would give a full response.
Aviation analyst Guy Leitch said SAA’s problems were a decline over many years, not a sudden fall. He said the airline lacked capital and skills, and its overheads were too high for its revenue.
When SAA relaunched after business rescue in September 2021, it had R2.5bn in working capital and no debt. The state had spent R38bn settling its old debt during the rescue process.
Creecy’s report on the airline’s financial and cash position is due to the committee by 30 October.
Source: this article is based on reporting by TimesLIVE. Image: TimesLIVE. Written with the help of AI and published by the Tzaneen Voice Business desk. See our Editorial Standards.
Anelisa Nkuna covers business and money news for Tzaneen Voice. Anelisa reports on the rand, fuel prices, interest rates, jobs, Eskom, Transnet, farming and company results. The aim is simple: explain what the numbers mean for household budgets, small businesses and workers in South Africa.