South African Airways delays salaries again despite profit claim

South African Airways delayed salaries for a second consecutive month in August 2025, affecting pilots, managers, and executives. The airline's 2025 financial results show a group net profit of R155 million for the year ended March 31, but this figure includes R1.169 billion in gains from asset disposals.

Excluding those sales, the group's pretax results were a loss of R996 million. The carrier also recorded a R317 million loss before interest, tax, depreciation, and amortization.

Staff pay delayed again

Salaries were delayed for a second consecutive month while the airline prioritized operating expenses. Most employees, including flight attendants and ground staff, were paid on time. A spokesperson addressed the scale of the delay, stating: "roughly 30%-40% of staff were affected, so 'most' is technically accurate but the ambiguity is doing a lot of work there."

Heathrow slots and the February deadline

The airline's financial stability now depends on further asset sales. South African Airways sold one of its two Heathrow slot pairs in March 2025 and retained the other. Proceeds from that sale have been used to fund ongoing losses.

The National Treasury approved a R1 billion guarantee, about $61 million, on August 5. A critical condition is attached to this government support. The carrier must identify assets for sale within 90 days and find a buyer for the remaining Heathrow slot pair by February.

Governance and history

The current financial strain follows a turbulent period. The airline, which dates to 1934, entered a 'business rescue' process in December 2019 and exited in April 2021. It resumed scheduled flights in September 2021 after an 18-month interruption.

A deal to sell a 51% stake in the airline collapsed in March 2024. Governance failures have been extensively documented, including by the Zondo state-capture inquiry. In 2020, a court declared former board chair Dudu Myeni a delinquent director for life, with the judge describing a "director gone rogue."

Alliance position and alternatives

As a Star Alliance member, South African Airways provides connectivity, having joined the alliance in 2006 as its first African member. A shutdown could affect passengers booked on its routes, but other carriers offer alternatives.

Ethiopian Airlines provides a much larger connecting operation through Addis Ababa, and Egyptair serves the continent from Cairo. Within South Africa, Airlink’s network covers more than 45 destinations and holds codeshare agreements with both United Airlines and Lufthansa. The airline's immediate future rests on meeting the February deadline to sell its last major asset.