12 September 2011
South African Airways (SAA) made a net profit of R782-million in the 2010/11 financial year, it announced on Thursday.
This was a 77% increase from last year’s R442-million.
“SAA’s financial position and the state of the business continue to show significant improvement,” board chairwoman Cheryl Carolus said in a statement.
“This financial performance is an encouraging response to the strategic objective to become a fully sustainable business over the next three years … and positioning SAA to compete successfully in the global aviation market in 10 years.”
Group operating profit rose by 66% to R807-million from the previous year.
Turnover, consisting largely of passenger revenue, increased from R16.9-billion to R18-billion.
Operating costs rose by five percent.
Public Enterprises Minister Malusi Gigaba said the airline, as a state-owned entity, was mandated to grow as a business while maintaining its role in the country’s development.
“It is crucial that SAA continues to support matters of relevance from a shareholder perspective and enhance the state’s policy objectives, such as the airlift strategy which seeks to regulate air transport… and the employment creation objectives.”