South African Air says competition, weak rand lead to loss
South African Airways said tougher competition, rising finance costs and a weakening of the rand led to the carrier’s biggest loss in more than a decade. The loss of ZAR4.7b (US$331m) in the year through March 2015 was also exacerbated by the outbreak of the Ebola virus in West Africa, which hurt traffic between South Africa and destinations in the Americas, India and Asia, SAA said Thursday. Finance costs rose 86% to ZAR490m due to increasing dependency on state guarantees to stay solvent, the airline said. “The increase in finance costs is directly attributable to the increased reliance on shareholder-guaranteed funding,” SAA said. “It is anticipated this will continue to increase until the airline achieves a turnaround in its operating result.” <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-09-19/star/south-african-air-says-competition-weak-rand-lead-to-loss
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South African Air says competition, weak rand lead to loss
South African Airways said tougher competition, rising finance costs and a weakening of the rand led to the carrier’s biggest loss in more than a decade. The loss of ZAR4.7b (US$331m) in the year through March 2015 was also exacerbated by the outbreak of the Ebola virus in West Africa, which hurt traffic between South Africa and destinations in the Americas, India and Asia, SAA said Thursday. Finance costs rose 86% to ZAR490m due to increasing dependency on state guarantees to stay solvent, the airline said. “The increase in finance costs is directly attributable to the increased reliance on shareholder-guaranteed funding,” SAA said. “It is anticipated this will continue to increase until the airline achieves a turnaround in its operating result.” <br/>
