CEO tells Scopa that SAA made a modest profit in past financial year

South African Airways (SAA) says it turned a modest but substantial profit in this past financial year.

SAA CEO John Lamola on Tuesday told Parliament it would be premature to share the exact figure but moved to assure the Standing Committee on Public Accounts (Scopa) that the airline was on the up.

The airline has not produced financial statements for the past four years, casting doubt over its liquidity during that time.

Public Enterprises Minister Pravin Gordhan has slammed critics of the SAA merger, saying the alternative would be to liquidate the airline.

But Lamola said that even with its aircraft and route limitations, the airline was in a healthier position than it’s been in years.

“What is of excitement for us is that the operational performance of SAA as an airline is positive, but it’s not in the hundreds and hundreds of millions of rand.”

He said that the board would be scrutinizing the audited financial statements on Tuesday night in preparation for their release at the end of next month.

“The amount is substantial enough that even if there are accruals and adjustments, we will still be able to say we have made an operational profit.”

However, the airline says it still needs around R1.5 billion to conclude the business rescue process.

-EWN

In other news – DJ Zinhle not ready for Durban after AKA’s death

Africa’s number one DJ and Mzansi businesswoman, Zinhle “DJ Zinhle” Jiyane has no plans at present to visit the city where the father of her child died.

Rapper Kiernan “AKA” Forbes was gunned down outside a restaurant in Durban, KwaZulu-Natal, on February 10. Zinhle and AKA have a daughter, Kairo, together. The city is going to be a hot spot for the entertainment industry in July, with many celebs flocking to the highly anticipated Cotton Festival and Durban July, among other events. Learn More