Johannesburg - South African Airways (SAA) reported a profit for the year ending March 31 due to fundamental restructuring, SAA said Monday, saying the company itself was "surprised" by the result. Net profit came in at 398 million rand (53.8 million dollars) against a net loss after restructuring costs of 1.085 billion rand previously, the airline said.
"SAA delivered a profit for the year despite unprecedented fuel prices, associated hedging losses and the onset in the second half of the worst recession since 1929," acting chief executive officer Chris Smyth told a results presentation.
"You must be surprised, just as we were surprised," Smyth said.
Critically, the airline posted a significant turnaround at operating level, recording an operating profit of 1.9 billion rand against a small operating loss of 72 million rand the previous financial year, he said.
"The financial results were achieved despite the industry having entered into a cyclical downturn in mid-2008.
"This was partly as a result of the global economic downturn which affected all airlines, but also due to the oil price hitting a historic peak of 147 US dollars last year," Smyth said.
He said airlines around the globe were hard hit, with the International Air Transport Association estimating that the industry would lose 15 billion dollars in 2009.
