The research looked at SAA’s core economic contribution by analysing the impact of direct activity generated by SAA on tourism, and South Africa’s international trade.
Image: Picture: David Ritchie/Independent Newspapers.
A new study has projected that the South African Airways' (SAA) Gross Value Added could triple to over R32 billion by the end of the 2029/30 financial year.
SAA’s Gross Value Added, which refers to the state owned airline’s contribution to South Africa’s Gross Domestic Product, was R9.1 billion for the 2023/24 financial year.
The research conducted by the Oxford Economics Africa looked at SAA’s core economic contribution by analysing the impact of direct activity generated by SAA on tourism, and South Africa’s international trade.
The economists said that the airline has the potential to triple its Gross Value Added to the SA economy in the next five years.
This means that SAA could increase the R9 billion to R32.6 billion by the 2029/30 financial year.
The researchers added that SAA Group’s operations will support 86,700 jobs by 2029/30, up from 25,000 jobs in 2023/24.
SAA’s operations could bring in R1.1 billion in tax revenue for 2023/24 and R4.4 billion in 2029/30.
The report estimated that SAA Group’s tourism impact in 2023/24 was R1.7 billion and could rise to R8.9 billion in 2029/30.
Lastly, the report noted that SAA’s trade impact in 2023/2024 amounted to R300 million, but it could quadruple to R1.2 billion in 2029/30.
Last week, SAA and its subsidiaries, announced that they had posted a profit of R252 million for the financial year 2022/2023. This is the first time the national carrier has posted a profit since 2012.
The interim board, led by Dr Derek Hanekom, released SAA’s 2022/23 financial year results since the airline exited business rescue and restarted operations in September 2021.
The results showed that the total revenue increased by 183%, from R2 billion the prior year, to R5.7 billion.
SAA said that the organisation was able to turn the prior year's negative earnings before interest, taxes, depreciation, and amortisation (EBIDTA) of R1 billion into a positive R277 million.
“This positive 2022/23 performance is particularly notable, given the challenging global aviation environment at the time and the then uncertainty around the future of SAA with a strategic equity partner,” SAA said.
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