South African Airways delayed salary payments for some employees for the second consecutive month in September and October, prioritizing operating bills over payroll. The airline's corporate affairs executive Mphilo Dlamini attributed the pressure to rising fuel costs and said the carrier lacked sufficient capital after emerging from business rescue. He insisted the airline would not request another government bailout, despite financial institutions being "interested in supporting us because we have a bankable strategy."
The delays affected 30-40% of employees in October, with some staff moved to later payment dates while most received salaries on the normal payday of October 27.
The government approved a R1 billion guarantee in August to support working capital. A guarantee does not provide cash directly but helps the airline obtain financing by backing the borrowing, though it still exposes taxpayers if SAA cannot repay.
SAA's annual report for the year ended March 31, 2025 shows a R155 million group net profit and a R30 million profit for the airline itself. However, the group reported a R317 million loss before interest, tax, depreciation, and amortization. The positive result relied on R1.169 billion in net disposal and lease-modification gains. Without that line, the result would be a R996 million pretax loss.
The auditor-general included a disclaimer of opinion, stating inability to obtain sufficient evidence to express an audit opinion on the financial statements.
The government guarantee includes conditions requiring SAA to find buyers and identify assets for sale by February. The airline has denied reports that its board considered returning to business rescue.