South African Airways (SAA) has presented its draft financial results revealing that it has lost a total of more than R10 billion over the past two years.
The airline’s business rescue practitioners and Public Enterprises Minister Pravin Gordhan briefed the Standing Committee on Public Accounts on Friday afternoon.
Video of Gordhan’s briefing below:
Ahead of the meeting, SAA gave members of Parliament the annual financial statements for the year ending March 2018, as well as the draft annual financial statement for the year ending March 2019.
This marks the first time the airline has presented its financials since 2017, and the first time the public has gained any insight into its financial situation since the group entered into business rescue in December 2019.
The airline has not turned a profit since 2011, and has received R57 billion in bailouts since 1994.
Gordhan outlines what the multi-billion rand bailouts by government were used for over the past three years.
“On how much was used was actually spent on the amount that was provided in cash what was it spent for and what the output was so that information is in the table provided by the department.”
“So for the following three years in 2017, 18, and 19 inputs of R10 billion respectively to settle debt was guaranteed and all of that R5.4 billion was used for recapitalisation of R2 billion was for working capital and R3.5 billion was used for settling finance requirements and R2 billion was utilised for working capital.”
Last week, Gordhan said in discussions with trade unions, they agreed to take salary cuts of up to 40% to ensure SAA’s survival.
SAA’s administrators, appointed in December to try to rescue the airline, have said previously that a wind-down or liquidation of the loss-making airline were likely outcomes.