SA Express posts a profit at the Annual General Meeting

25-Sep-2013

Despite the tough global macroeconomic environment, SA Express announced a net profit on the audited 2013 financial results at the Annual General Meeting (AGM) held at the airline's headquarters in Johannesburg today.

This past financial year, SA Express has made a significant turnaround by posting at net profit of R650k as compared with the restated loss of R365.9m in 2012. This is mainly attributed in part to the increase in turnover of over R270m (from R2,021bn in 2012 to R 2,295bn in 2013), the operating cost remaining stable and the recognition of the deferred tax asset of R158m based on future profits.

Furthermore, the airline's operating margin marked an improvement of R263m from an operating loss of R288.3m in 2012 to an operating loss of R25.1m in 2013. The airline also saw a drop in cash used in operations: from R234.2m in 2012 to R133m in 2013. It is expected that operations will be sustainable based on expected future growth levels and implementation of the SAX 20:20 Vision in line with SAA's Long-Term Turnaround Strategy (LTTS).

These have resulted in the company clearing the disclaimed opinion from the previous years. The company is still working hard to improve the audit report.

'I would like to acknowledge and thank the SA Express team for their continued commitment and hard work', says Inati Ntshanga, CEO of SA Express. 'Their tenacity drove initiatives that amounted to a cost saving of R129m, exceeding the target of R70m. Though the business is making the right decisions and heading in the right direction, we cannot afford to be complacent as a lot still needs to be done to ensure that we champion a sustainable operational and financial performance.'

Andile Mabizela, Chairperson of the SA Express board remarked: 'In the past financial year, the board together with the executive management of SA Express has invested significant resources to deliver on shareholder value amidst tough internal and external pressures. On behalf of the SA Express board and team, I would like to thank our shareholder for acknowledging the initiatives taken by the airline to deliver on its mandate', concludes Mabizela.

SA Express is also gearing itself for growth in accordance with its long term strategy. With the approved 15 year fleet strategy, SA Express is expected to update its fleet in the second half of 2014 with next generation aircraft that will offer a comprehensive route network and improve on operational costs.