South African Airways (SAA) is placing Africa at the centre of its long-term recovery strategy, betting that rising intra-continental travel demand will drive growth over the next decade as the airline works to rebuild scale, credibility and profitability.
Acting CEO Matshela Seshibe said in an interview that the plan includes fleet expansion, new route development and measured growth across regional and intercontinental operations.
“We do have intentions to add some great destinations, especially on the African continent,” he said, declining to name specific routes ahead of formal announcements.
Seshibe, who has been in the role for just over a month following the resignation of John Lamola, inherits an airline that has made meaningful operational progress since emerging from business rescue but continues to grapple with governance weaknesses and a volatile operating environment.
Over the past four years, SAA has expanded from a skeletal operation of five aircraft flying six routes to a fleet of 19 aircraft serving 17 destinations. During this period, the airline restored international routes to São Paulo and Perth, strengthened domestic operations, and gradually rebuilt market share after restarting flights in 2021.
The renewed focus on Africa comes as SAA attempts to consolidate this recovery phase and lay the groundwork for sustainable growth. While network rebuilding and fleet expansion have progressed, Seshibe acknowledged that internal systems and controls, “especially within the finance and control space, did not mature at the same pace as our top line and operational growth”.
We see Africa in motion. SAA wants to be part of that story.
— Matshela Seshibe, acting SAA CEO
Those weaknesses were laid bare last month when the auditor‑general (AG) briefed parliament, describing SAA as being weighed down by:
- “inferior” financial statements;
- revenue leakages;
- billing inefficiencies; and
- significant internal control deficiencies.
The SAA group recorded irregular expenditure of R474m in the 2023/24 financial year and R504m in 2024/25, alongside fruitless and wasteful expenditure of R1m and R2m, respectively. Despite these findings, SAA reported a net profit of R155m for the year ending March 2025.
In response, the airline is implementing tighter financial oversight, improved record-keeping, and stronger consequence management following feedback from the AG.
Seshibe said restoring confidence with regulators, shareholders and customers was a priority. However, he stressed that SAA’s longer‑term growth ambitions were increasingly tied to Africa’s aviation potential.
Citing forecasts from the International Air Transport Association, Seshibe said African air traffic is expected to grow by more than 6% a year — well above the global average of about 4% — driven by population growth, urbanisation and the gradual easing of visa restrictions across the continent.
“Only 2% of air travel is happening in Africa, against the population contribution of over 18%,” he said. “We see Africa in motion. SAA wants to be part of that story.”
The strategy reflects a broader shift among African carriers seeking to capture intra‑African travel demand as governments move to improve connectivity and liberalise air travel under initiatives such as the AU’s Single African Air Transport Market.
SAA believes its full‑service model gives it a differentiated position, even as low‑cost carriers continue to dominate parts of the domestic market. “We are a full‑service premium carrier that provides good service, connectivity and value. We have gained significant market share domestically since reopening,” Seshibe said.
Ticket sales were holding steady, particularly among business and government travellers.
The airline estimates it now ranks either second or third in the local market, depending on seasonal fluctuations. Yet SAA’s expansion ambitions come at a challenging time for the global aviation industry. Rising jet fuel prices — exacerbated by the conflict in the Middle East — are placing renewed pressure on airline cost structures.
Success for SAA will be a company with clean audit findings, respected by customers, admired by employees and sustainably profitable
— Matshela Seshibe, SAA acting CEO
Seshibe said fuel, which typically accounts for around 30% of ticket prices, has risen by at least 140%, forcing airlines globally to increase fares and reassess route economics. “The airline industry is going through turbulence at the moment. At certain levels, fare increases may depress demand,” he said.
SAA has responded by:
- selectively raising prices on more resilient routes;
- consolidating certain schedules; and
- reviewing operational efficiencies, including aircraft utilisation and fuel consumption.
Despite these pressures, Seshibe was adamant that the airline was not seeking further government funding. “We are not getting any funding from the government. We are not asking for funding,” he said.
Instead, management’s immediate focus is on protecting liquidity and ensuring sustainable cash generation in an uncertain environment. “We are turning over every rock to find efficiencies across all cost line items. In uncertain times, the key metric is cash generation. We are comfortable that we have enough resources to weather the storm.”
Looking ahead, Seshibe said success for SAA would be defined not only by growth but also by stronger governance, improved audit outcomes, and a more credible brand over the next three to five years.
“Success for SAA will be a company with clean audit findings, respected by customers, admired by employees and sustainably profitable.”
Business Times
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