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SA Express reports USD65,000 profit in FY2013

27-Sep-2013 3:58 PM

SA Express reported (25-Sep-2013) a net profit of ZAR650,000 (USD65,000) in FY2013, up from a loss of ZAR365.9 million (USD36.7 million) in FY2012. The company attributed the improvement in part to a 13.6% year-on-year increase in revenue to ZAR2.29 billion (USD230 million) and stable operating costs. South Africa's Minister of Public Enterprises Malusi Gigaba attributed the revenue growth mainly to increased passenger fares and improved load factors. Mr Gigaba said the airline achieved cost savings of ZAR129.1 million (USD12.9 million), exceeding its target of ZAR70 million (USD7 million). The airline also reported a 91.3% reduction in its operating loss to ZAR25.1 million (USD2.5 million). SA Express CEO Inati Ntshanga said, "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." The carrier plans to update its fleet in 2H2014 to expand its network and reduce operational costs. [more - original PR - SA Express] [more - original PR - Minister of Public Enterprises]