South African Airways (SAA) says it is continuing to drive the implementation of its long term turnaround strategy, with the airline due to introduce a new route.
“By the beginning of August, SAA would have introduced two new commercially viable routes … while the positive impact of improving opportunities and efficiencies in its network should realise a positive impact of R2.5 billion in annualised earnings,” said the national carrier on Friday.
In March, SAA introduced its first flight to Abu Dhabi and it will begin flights from Accra to Washington on 2 August, reports government news service SANews.
It said while commercially the airline has adjusted capacity against declining demand, 81% aggregate load factors marked the first quarter of the 2015/16 fiscal year.
Meanwhile, the airline highlighted that it remains focused on the turnaround strategy.
“Across both our commercial and operational areas there is a clear focus on delivery against the objectives of the plan.
“Operationally, SAA has been ranked amongst the best airlines in the world that operate in excess of 10 000 flights monthly for its on-time performance since March this year. In June, the airline was ranked fourth globally,” said SAA Acting CEO Nico Bezuidenhout.
SAA has already increased frequencies to key African destinations such as Mozambique, Democratic Republic of Congo and Mauritius, among others.
“The positive commercial impact of a demand-side response not only indicates that there are positive gains to be made through network efficiencies but, that sound commercial decision making will benefit the business in the medium to long term,” explained Bezuidenhout.
Africa remains a key focus area for SAA as aviation has the potential to make an important contribution to the further economic development and growth on the continent.
“It connects countries, markets and facilitates trade and connects Africa to global supply chain links,” he said.