afrol News, 28 September - The South African Airways (SAA) has reported positive financial results, despite the current global economic crisis, with the net profit reaching R398 million in the past year.

The company released the results today, covering the period between March 2008 and April this year.

The state BuaNews agency reported the acting Chief Executive Officer (CEO), Chris Smyth, saying the airline did well considering the soaring oil prices and a tough trading environment.

The airline's operating profit reportedly grew to R1.9 billion against the breakeven in the previous year, while the total income also grew by a 19 percent to R24 billion from R23 billion.

"SAA managed to not only survive these turbulent conditions but also to post a strong operational turnaround which was due largely to the deep and fundamental restructuring the airline embarked upon in 2007," Mr Smyth said.

He further said the financial performance of the past year will put SAA in a very comfortable position, while the company would continue to monitor its performance and avoid any possible financial shocks, especially with under-performing routes.

The SAA's presently services 19 African destinations, the routes which the management feel contributed a lot to the company's recent success.

However Mr Smyth said: "Flight frequencies on certain domestic and international routes have already been reduced and cutbacks on flight frequencies are foreseen for the rest of the year".

The South African Airways had been entangled in counter suits and industrial actions and reported loses in the past seven years and government was on more than one occasion required to bailout the airline.

By staff writer

© afrol News

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