Struggling state-owned regional airline South African Express made an unaudited R234-million loss in the 2016-17 financial year, compared with a R16.9-million profit in the previous year.
Revenue of R2.4-billion was down from the previous R2.5-billion, and translated into a net operating loss of R104.7-million, compared with the previous operating profit of R27-million.
The results are provisional and will be finalised only at the end of next month.
Passenger numbers fell from 1.309million to 1.23million in 2016-17, while flights operated declined from 33234 in 2015-16 to 31206 in 2016-17.
SA Express executives gave an outline of the challenges facing the airline to parliament's portfolio committee on public enterprises yesterday.
Acting CEO Victor Xaba - who was seconded to the company by Public Enterprises Minister Lynne Brown from Denel Aerostructures in April - told MPs that the company's commercial viability and long-term financial sustainability had been undermined by its diminished competitive edge relative to privately owned airlines.
Xaba also identified the poor balance sheet as a problem, and said this was linked to long-term aircraft leases, which resulted in high, fixed costs.
Liquidity and solvency were threatened, largely due to poor working capital management, legacy creditors, high spares costs and excessive debt.
Xaba noted that morale was low and the airline lacked a vision of its future. - BDLive
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