South African Airways Financial Results

Highlights of SAA Financial Results for year ending March 2001.
* Turnover increased by 17% to 10,839 million (2000: R9,263 million)

* Other operating income (including sale of property aircraft and equipment) increased 269% to R2,291 million (2000: R621 million)

* Passenger turnover increased 19% to R8,889 million (2000: R7,474 million)

* Operating costs increased by 34,5% to R12,781 million (2000: R9502 million)

* Net profit after taxation increased by to R408.3 million (2000: R348.9 million)


* Capacity utilisation (load factor) up 5% to 67%

* Headline loss R735 million

For the purposes of full disclosure SAA has included a headline earnings format profit/loss. As such, headline earnings do not include the profit/losses made on the sale of aircraft and other assets but do include one off items.

Commenting on the previous year’s results SAA CEO, Andre Viljoen said, “This has been an extremely difficult time for all airlines but it has also been a very constructive year for SAA.

“The increase in passenger turnover is particularly encouraging and reflects our extensive revenue network, connectivity and improved yield management capability. Our Millennium product upgrade of lounges and aircraft seating was commenced with positive feedback. Our operating performance was, however, severely impacted by the rise in the price of fuel, a stronger US dollar undermining our historic rand hedge and significant one off items. Problems experienced with the implementation of our B737-800 aircraft further contributed to our operating costs. SAA is currently operationally sound with a strong balance sheet and cash of more than R2bn in the bank. The recent events in the US, which come on top of some very difficult operating conditions for the airline industry as a whole, may well impact on SAA. We have a team that is evaluating the potential impact. However, with the implementation of our ‘Perfecting the Basics’ strategy, I believe SAA is in a strong position to face the challenges ahead.”