SAA promises improvements following Auditor General’s report

South African Airways said it is taking “urgent steps” to address concerns raised by the country’s Auditor General in a report on the financially troubled carrier. In his report, AG Kimi Makwetu questioned whether the airline remaines a going concern. “Six consecutive years of operating losses have further eroded the capital base and this continues to impact on the entity’s ability to operate in a highly demanding and competitive environment,” Makwetu said in his report, which appeared in the South African media. “The history of losses, lack of capital and volatility in foreign exchange rates, along with maturing loans and working capital deficiencies, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern.” Responding, SAA said its results for the 2016/17 financial year are scheduled to be announced later this month, but it had incurred a net loss of ZAR5.6b (US$467m), more than three times as great as the preceding financial year’s loss of ZAR1.5b. SAA admitted its result for the 2017/18 period “will not be much different’ from that for 2016/17. “The board has noted and accepted the Auditor General’s report,” SAA CEO Vuyani Jarana said. However, he added, “The majority of the airline’s operations are sound and we are building on this to ensure we break the loss-making cycle and transform the airline into a viable and sustainable entity.”<br/>