African airlines seek lifelines: SAA bailout, Uganda $113M, Kenya $2B rescue

South African Airways (SAA) quietly received more than R1 billion ($58 million) in fresh equity from the South African government during the 2024-25 financial year. The airline framed the infusion as part of its growth and recovery efforts, but the Department of Transport, which oversees SAA, insists it is not a bailout, noting no state funding had been provided since 2023.

SAA recovery masks operational weaknesses

Meanwhile, other national carriers in Africa are also seeking financial support: Uganda Airlines secured $113 million to expand its fleet, and Kenya Airways is exploring a $2 billion investment to stabilize operations. Skeptics, however, question whether SAA’s reported turnaround fully reflects its underlying performance. The airline’s 2025 annual report highlighted a return to profit, but the results were largely shaped by asset sales, accounting adjustments, and state-backed interventions, rather than sustained improvement in airline operations.

SAA posted a net profit of R155 million ($9.03 million) and an operating profit of R336 million ($19.6 million) on revenue of R9.27 billion ($540.3 million). The airline cited rising passenger numbers, route expansion, and a higher load factor as evidence of recovery. Yet a closer look shows that a R1.17 billion ($68.2 million) gain from selling property, aircraft, equipment, and intangible assets significantly bolstered the results. In other words, the reported profit relied more on asset disposal—including prized Heathrow slots—than on flying passengers.

Rising travel demand drives African carriers

Without these sales, SAA’s profit before tax of R173 million ($10 million) would have turned into a pretax loss of roughly R996 million ($56.3 million), reflecting the precarious financial position the airline has repeatedly faced. Operational data showed a load factor of 65 percent but a negative airline EBITDA of R443 million ($25.82 million), compared with a targeted positive R241 million ($14 million). CEO John Lamola received a 23 percent pay increase to R4.7 million ($0.27 million), while other executives saw raises of 23-36 percent.

Across Africa, carriers are seeking funding to meet rising travel demand. Uganda Airlines secured Ush422.26 billion ($113.4 million) to acquire 10 new aircraft, aiming to restore long-haul operations and expand its route network. Kenya Airways, burdened by years of debt, is seeking fresh investment. The Kenyan government is seeking a strategic partner in a deal valued at up to $2 billion, with an international expression of interest expected to attract investors willing to contribute between Ksh154.8 billion ($1.2 billion) and Ksh258 billion.