Freight posts disappointing result for SAA

REVENUE FROM freight and mail were not the high point of South African Airways’ financial results released last week. The division posted R1.76-billion from R1.82-billion the previous year as a result of growing competition and fewer aircraft on key routes due to the grounding of the fleet of Boeing 747s, CEO Khaya Ngqula said. In a significant turnaround for the period to end March 2008, the airline achieved a R123-million net profit (excluding restructuring costs) from ongoing operations against a loss of R883-million the previous year. The improved results are attributed to SAA’s fundamental restructuring, launched in May 2007, which resulted in the airline reducing costs by more than R1bn. Once-off restructuring costs amounted to R1.35-billion.