South African Airways Returns to Skies But Financial Viability Remains Uncertain

Johannesburg – This past weekend, South African Airways (SAA) planes returned to the skies, marking a major milestone for the embattled national carrier. After a two-year hiatus, SAA resumed intercontinental flights between Johannesburg and New York. However, doubts still loom about the airline’s financial viability. SAA’s absence dealt a blow both to South Africa’s connectivity and national pride. Since its grounding in 2020 amid COVID-19, observers wondered if SAA would ever recover. The airline was already struggling pre-pandemic following years of alleged mismanagement and corruption.

The relaunched airline hopes to reclaim its stature as Africa’s largest carrier. “This is a great moment for the South African aviation industry,” said SAA board chair John Lamola at O.R. Tambo International Airport. However, a recent report from South Africa’s auditor general paints a concerning financial picture. It highlighted irregular expenditure and insufficient cost controls at SAA. The report took SAA’s leadership to task for inadequate planning during the restart.

With the airline historically relying on government bailouts, analysts question if SAA can achieve profitability. The airline aims to reach 60 destinations and carry over 5 million passengers by 2025. Reaching these goals could be an uphill battle. Nonetheless, Transport Minister Fikile Mbalula expressed confidence in SAA’s new beginning. “The return of SAA into the skies demonstrates the tenacity of this South African company to weather challenges,” he remarked.

The relaunch comes as SAA negotiates a proposed sale of a 51% stake to private-equity partner Takatso Consortium. If approved, the deal could strengthen SAA through private sector expertise.