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South African Airways (SAA) is paying staff salaries in stages rather than in full on the usual payday as its financial pressures mount.<\/p>\n
The state-owned airline says it has faced a cash crunch in recent months, which has made it difficult to meet its monthly payroll obligations. Some staff confirm that the airline is not paying their salaries on time.<\/p>\n
Read:
Now SAA\u2019s acting CEO Seshibe on \u2018special leave\u2019 [Aug 2026]
SAA receives R1bn guarantee, further bailouts not ruled out [Oct 2026]<\/p>\n
The salary delays come amid a prolonged leadership crisis at SAA.<\/p>\n
The airline has had no permanent CEO for months. Matshela Seshibe was appointed to the top job on an acting basis, only to be suspended weeks into the post.<\/p>\n
SAA is rudderless, with most of its senior positions currently filled in an acting capacity \u2013 including CEO, chief financial officer, airline operations officer, and human capital officer.<\/p>\n
The airline says it staggered salary payments for the first time in September.<\/p>\n
\u201cDespite the significant liquidity pressures arising from geopolitical disruptions and increased fuel costs, the airline has continued to honour its obligations to staff,\u201d says\u00a0SAA executive for group corporate affairs Mphilo Dlamini in a statement.<\/p>\n
\u201cThese pressures necessitated the staggered payment of salaries for the first time in September and now in October.\u201d<\/p>\n
According to SAA\u2019s latest annual report, the airline has 3 422 staff \u2013 2 321 of whom are permanent and 645 are contractors, with the rest based at regional and international stations.<\/p>\n
TimesLive\u00a0reported that SAA sent a memo to staff informing them that salaries would be late in October, with the airline opting to honour outstanding payments in a staggered manner.<\/p>\n
Staggering \u2026<\/p>\n
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According to the memo, which Moneyweb has not been able to secure, SAA ground staff and cabin crew are set to be paid on 27 October, pilots on 28 October, and management and specialists on 30 October.<\/p>\n
The last tranche of payments will be made to executives on 31 October.<\/p>\n
A trade union source tells Moneyweb that SAA\u2019s normal payday is the 25th of every month.<\/p>\n
That salaries would be paid on the 27th for ground staff and cabin crew signifies a delay in payments for the second consecutive time, the source said.<\/p>\n
\u201cThis is nothing new. There is constant uncertainty about whether SAA can pay salaries; this has been the case since August.\u201d<\/p>\n
Echoes of the past<\/p>\n
The airline found itself in a similar situation regarding its ability to pay salaries on time when it was deep in business rescue (which it entered in December 2019).<\/p>\n
Read: SAA exits administration after 17 months [Apr 2021]<\/p>\n
More than five years on, it says it consulted its staff and trade unions about the measures being implemented, including its approach to staggering salary payments.<\/p>\n
\u201cThese measures were taken to manage the airline\u2019s sustainability and ensure that it can continue operating while meeting its obligations and supporting their wellbeing,\u201d says Dlamini.<\/p>\n
Cost pressures<\/p>\n
SAA acknowledges that it is facing money problems, adding that, as with airlines globally, it is facing increasing cost pressures caused by rising fuel prices.<\/p>\n
According to data from the International Air Transport Association, in the week ending 9 October, the global average price of jet fuel had reached $190.18 per barrel, a year-on-year increase of 111.2%.<\/p>\n
For airlines, fuel is the single largest operating cost factor and a key driver of ticket pricing and route viability.<\/p>\n
\u201cThese pressures are affecting airlines worldwide by constraining margins, liquidity and the cost of maintaining reliable air services,\u201d says SAA.<\/p>\n
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\u201cIn response, airlines are reassessing financial assumptions, adapting operating strategies and strengthening measures to withstand external economic shocks.\u201d<\/p>\n
It adds that as South Africa\u2019s national flag carrier, \u201cSAA is not insulated from these developments\u201d.<\/p>\n
\u201cThe airline recognises that its long-term sustainability depends on its ability to respond decisively to changing market conditions, preserve operational integrity, protect its commercial position and continue to deliver value to customers, employees and the broader South African economy.\u201d<\/p>\n
R1bn government guarantee\u00a0<\/p>\n
Government has come to the airline\u2019s rescue in light of its operations and finances being placed under pressure by the fuel price shock.<\/p>\n
National Treasury revealed in the Medium-Term Budget Policy Statement last week that SAA received a R1 billion guarantee in August 2026 to support its working capital requirements.<\/p>\n
It stressed that this is not an immediate cash injection or a bailout.<\/p>\n
Listen\/read:\u00a0\u2018Government bailout era is over for SAA\u2019 [Jun 2023]<\/p>\n
Guarantees are given by National Treasury to state-owned entities (SOEs) such as SAA to help them raise new debt with banks and other funders or settle existing debt obligations, especially when they are coming up for repayment.<\/p>\n
SOEs then use these guarantees to secure new debt or roll over the immediate repayments to a later date.<\/p>\n
If they fail to pay back debt when it is due (or default), then government, or taxpayers, will be on the hook for payments.<\/p>\n
Dlamini says SAA plans to use the R1 billion government guarantee to raise new capital to fund the airline\u2019s \u201cbusiness requirements under the current geopolitical challenges and prevailing aviation fuel hike\u201d.<\/p>\n
#SAA #staggers #salary #payments #cash #crunch #deepens<\/p>\n","protected":false},"excerpt":{"rendered":"
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