South African airlines in crisis: SAA posts R354m loss, FlySafair cancels 26 flights over pilot strike

South Africa’s aviation industry entered a new phase of disruption on Monday as FlySafair cancelled 26 flights following a surprise pilot strike, while state-owned South African Airways (SAA) reported a R354 million loss for its last financial year.

FlySafair, one of the country’s leading low-cost carriers, said it was forced to cancel flights at the last minute after pilots who had initially confirmed availability suddenly withdrew on Sunday night. The airline confirmed that most other flights remain unaffected and passengers impacted by the strike have been contacted directly.

“This unexpected withdrawal came from pilots who had agreed to fly but changed their decision late last night,” FlySafair said in a statement.

The dispute stems from a breakdown in pay negotiations between FlySafair and the Solidarity trade union, which represents nearly two-thirds of the airline’s pilots. Despite FlySafair offering a 5.7% salary increase, above current inflation rates, Solidarity is demanding a 10.5% hike, alongside added bonuses and flight pay. According to the airline, these demands could raise pilot-related costs by over 20%, which it called “unsustainable.”

“Almost 90% of pilots voted in favour of the strike. That’s a clear sign something is deeply wrong,” said Solidarity spokesperson Morné Malan. “FlySafair must return to the negotiating table if it values stability.”

What began as a planned one-day protest has now evolved into a 14-day standoff, with both parties refusing to back down.

FlySafair, however, maintains that its pilots are among the top earners in South Africa, with captains reportedly earning between R1.8 million and R2.3 million annually, well within the top 1% of national income brackets. The airline said pilots flew an average of 63 hours in June, below the 100-hour monthly cap set by civil aviation authorities.

SAA struggles with R354 million loss

In a separate development, South African Airways (SAA) announced a R354 million loss for the 2023/24 financial year, its second full year of operations post-business rescue.

The results, published nearly 10 months late, mark a disappointing downturn from the R210 million profit recorded in the previous year. The airline blamed its losses on external shocks such as currency volatility, which triggered a R415 million forex loss, and the ongoing Russia-Ukraine conflict, which inflated jet fuel costs from R1.3 billion to R1.9 billion.

“The war’s impact on jet fuel pricing has been catastrophic,” said CEO John Lamola. “But despite the loss, we’ve maintained a debt-free, asset-rich balance sheet, and we’re building a stronger foundation for sustainable recovery.”

The airline also cited a 30% surge in aircraft leasing costs and global delivery delays as further contributors to its financial strain.

Mango Airlines still grounded

Meanwhile, Mango Airlines, a subsidiary of SAA that has been in business rescue since August 2021, remains grounded after the Johannesburg High Court struck down its proposed rescue plan.

The plan, which would have repaid creditors just 4.43 cents to the rand, was challenged by Aviation Co-ordination Services. SAA has distanced itself from Mango’s situation, clarifying that it has no authority over Mango’s financial or strategic decisions.

“The challenges facing Mango do not affect SAA’s operations or strategic goals,” the airline said.

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