South African Airways (SAA) has issued a statement saying it is on track with its turnaround strategy with quarter one results showing that the airline is ahead of the plan in its trading performance.
Concerns over the ability of SAA to continue operations have been prompted by its delay in finalising its annual financial statements for 2017/2018 and tabling them in parliament by the end of September as required by law.
“We have always maintained that it will take us until 2021 to break even,” the airline said. “The quarter one results, reflect the Board and management’s commitment to turn the airline around despite the challenges.”
“The airline’s quarter one performance shows a significantly improved performance based on the targets we must reach,” said SAA spokesperson Tlali Tlali.
Tlali also reassured suppliers, creditors and its travelling customers that the airline was not bankrupt. “SAA is not bankrupt and will not file for bankruptcy,” he said. Moreover, he said the airline would continue to honour its obligations to its customers, suppliers and creditors.
“Since the implementation of one of the key initiatives on revenue optimisation and network rationalisation, SAA has seen encouraging positive financial performance for Quarter one of this financial year,” it assured. “These results are borne out of network changes and capacity redistribution SAA implemented earlier this year in its route network… We remain focused on implementing the turnaround plan and we are seeing positive results.”
Source: Business Day
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