South African Airways received a R1 billion (approximately €54 million) government guarantee in August to support working capital after higher global jet-fuel prices increased operating costs and strained the state-owned carrier’s liquidity. The measure, disclosed during South Africa’s Medium-Term Budget Policy Statement, is a guarantee rather than a direct cash injection, while further assistance has not been ruled out.
National Treasury Director-General Duncan Pieterse said SAA’s remaining fiscal risk would depend on whether it can meet its operating and financing requirements without additional state support. The airline also has about R223 million in government guarantees linked to unflown-ticket liabilities and corporate letters of credit.
The government has provided SAA with roughly R50 billion over the years. Treasury and the Department of Transport are continuing work to identify a strategic-equity partner, with the transaction’s fiscal impact still dependent on the completion of financial advisory work.
SAA’s liquidity pressure has intensified. Salary payments were delayed again in October, with employees scheduled to receive wages in stages. The carrier warned that deteriorating cash flow could threaten operations, although no new direct bailout has been approved. Some suppliers have reportedly sought prepayment as the airline manages immediate funding needs.