SAA posts R966 m net profit

JOHANNESBURG – South African Airways confirmed yesterday that it had posted a net profit of 966 million rand in 2004/05 compared to a 8,6 billion rand loss in the previous period.

The results had been partially announced by parent company Transnet hen it released the group’s results for the year to end-March on Monday. The flag carrier’s shock loss in 2003/04 was triggered by a nearly 6-billion-rand hedge book loss and impairment charges on aircraft.The hedge book was closed during the year under review.SAA Chief Executive Officer Khaya Ngqula said the airline was on track to cut costs by 1,6 billion rand by 2007.”In the year under review our operational costs have increased much slower than our revenue – a simple formula we intend to pursue going into the future,” said Ngqula in a statement.He said the airline was reviewing its business model for the domestic market, following competition from budget carriers charging very low prices.It was also looking at its long-haul fleet strategy because of declining yields.SAA is to be removed from the Transnet stable by March 31 2006 – operating as a separate company and reporting directly to the Public Enterprises Minister.-Nampa-ReutersThe flag carrier’s shock loss in 2003/04 was triggered by a nearly 6-billion-rand hedge book loss and impairment charges on aircraft.The hedge book was closed during the year under review.SAA Chief Executive Officer Khaya Ngqula said the airline was on track to cut costs by 1,6 billion rand by 2007.”In the year under review our operational costs have increased much slower than our revenue – a simple formula we intend to pursue going into the future,” said Ngqula in a statement.He said the airline was reviewing its business model for the domestic market, following competition from budget carriers charging very low prices.It was also looking at its long-haul fleet strategy because of declining yields.SAA is to be removed from the Transnet stable by March 31 2006 – operating as a separate company and reporting directly to the Public Enterprises Minister.-Nampa-Reuters