South African Airways delayed salaries for a second consecutive month, affecting 30-40% of staff including pilots, managers, and executives, while prioritizing operating expenses. The Star Alliance member sold one of its two valuable London Heathrow takeoff and landing slots in March 2025 but already used the proceeds to cover losses.
The airline reported a pretax loss of R996 million (excluding asset sales) for the year ended March 31, 2025. The South African Treasury approved a R1 billion government guarantee on August 5 and gave SAA until February to find a buyer for its remaining assets, with a 90-day deadline to identify additional items for sale.
SAA's Auditor General issued a seventh consecutive disclaimed audit opinion and identified R500 million of disclosed irregular expenditure with unclear accountability. The airline acknowledged its business "has not been cash-generative for a very long time."
A spokesperson blamed fuel prices, though financial troubles predate recent global conflicts. The airline denies reports its board considered bankruptcy. Its 2025/26 annual report missed the September filing deadline.
SAA joined Star Alliance in 2006 as its first African member. The airline now faces competition within the alliance from Ethiopian Airlines, Egyptair, and other carriers. Airlink, which codeshares with United and Lufthansa and serves over 45 destinations, provides an alternative for key Star partners.
The airline has received approximately US$3 billion in subsidies and burned at least US$8 billion including taxpayer losses and creditor writeoffs in bankruptcy. A deal to sell 51% of the airline collapsed in March 2024.