SAA salaries delayed again as airline’s cash crisis deepens

South African Airways (SAA) has extended its employee salary delays for a second month due to increasing financial struggles. Following media reports suggesting staggered October salary payments, sources revealed that ground staff and cabin crew would be paid first, followed by pilots, management, and executives. September salaries also reportedly faced delays with some employees receiving their payments only in early October. The airline may now pay salaries up to five days late this month.

The latest pay delays come on the heels of a R1 billion government guarantee provided in August to support SAA's working capital needs. Despite SAA's previous claims of becoming financially independent, the airline now faces significant liquidity pressures. These pressures are attributed to geopolitical disruptions, escalating aviation fuel costs, and challenging international operating conditions.

SAA spokesperson Mphilo Dlamini confirmed that such staggered salary payments were necessary to maintain business sustainability while continuing operations. He stated that the airline had consulted employees and organized labor about the arrangements, emphasizing that the measures were essential for preserving the company's long-term viability. Dlamini mentioned that the board and management had intensified cost controls, reviewed expenditure, and implemented stricter cash flow monitoring to tackle the current crisis.

SAA defended the R1 billion government guarantee, arguing that it offers a way to raise capital under the current economic climate. However, Outa CEO Wayne Duvenage blamed SAA's financial troubles on leadership instability and political interference. Duvenage criticized the government's decision to continue appointing acting executives and highlighted the reliance on bailouts, which he claimed contradicts prior assurances that SAA would no longer burden taxpayers.

He questioned whether the government is genuinely concerned about the airline's long-term financial sustainability, pointing out that political considerations continue to undermine professional management and accountability in state-owned enterprises.

The financial predicament of SAA has also drawn attention from Parliament. Dlamini confirmed receiving correspondence from the Standing Committee on Appropriations and pledged a comprehensive response. The airline plans to provide details about its current cash shortfall, explain its financial position and rising operating costs, and outline measures being taken to improve financial sustainability.

However, SAA has not yet disclosed the exact extent of its cash shortage or whether the latest government guarantee has been used to secure additional borrowing.