SAA has revealed further details around changes to its loss-making international routes, which, for the year ending March 2014, recorded a R235 million increase in operating losses to R1,6 bn.
Speaking at a media briefing, following SAA’s annual general meeting (AGM), CEO Nico Bezuidenhout said SAA would cut its Beijing route in the first week of April.
The route will be serviced by Air China as part of a codeshare agreement. Air China will begin direct services to South Africa in May.
SAA has already cutback capacity on its Mumbai route and – subject to approval – will look at fully withdrawing from the route.
The airline is also considering re-routing its direct flights to New York and Washington to include a stop either in Senegal or Ghana, Bezuidenhout said.
During the period in review, the SAA Group realised growth in revenues by 12% (from R27,1 billion to R30,3 billion) with an operating loss (EBITDA) of R374 million.
A weak rand and high fuel prices had affected the financials for period review, said CFO Wolf Meyer. Also, revaluation of seven wide-body aircraft owned by SAA resulted in an impairment of R782 million.
Domestic operations remain profitable with 10% growth in its profit contribution from R722 million to R791 million. Regionally, African routes performed positively with a 17% increase from R648 million to R761 million.
