After reports reveal quiet $58 million bailout, SAA CEO John Lamola resigns

Barely two weeks after reports showed South African Airways (SAA) received more than R1 billion ($58 million) in fresh equity support from the South African government during the 2024–25 financial year, the national carrier entered a period of leadership change that culminated in the resignation of Chief Executive Officer John Lamola, who will step down at the end of April 2026.

SAA confirmed that Barbara Creecy, acting as the government’s shareholder representative, and the airline’s board accepted Lamola’s resignation. The developments come amid heightened scrutiny of the airline’s governance and finances, following separate findings by the Public Protector that cleared Deputy President Paul Mashatile and Transport Minister Barbara Creecy of allegations linked to the process that led to Lamola’s appointment.

Board reshuffle follows leadership changes

In a statement, SAA described Lamola’s exit as the closing of a chapter shaped by the airline’s recovery efforts after years of financial distress and the disruption caused by the Covid-19 pandemic. Lamola joined the airline’s leadership structure in July 2021 as a non-executive director and board chair before moving into the role of interim group chief executive in May 2022. He was later appointed permanent group CEO following a recruitment process that drew political scrutiny and prompted a request for investigation by the Democratic Alliance.

During his tenure, the airline said it focused on restoring core operations and rebuilding its network. SAA expanded its fleet from five aircraft to 19 and increased its destinations from six to 17. That expansion included the return of international routes such as São Paulo and Perth, alongside the gradual strengthening of domestic services as travel demand recovered.

Lamola’s departure is not occurring in isolation. SAA also confirmed that three board members have left their roles for different reasons in recent weeks. Aviation analyst Guy Leitch noted in public comments that the group’s chief financial officer had also retired shortly before the announcement, adding to what industry observers describe as a broader reshuffling within the airline’s senior leadership.

Seshibe appointed acting SAA CEO

To maintain continuity, SAA has appointed Matshela Seshibe, chief executive of its subsidiary Air Chefs, as acting group CEO. The board said it will begin the process of recruiting a permanent chief executive shortly. It also stressed that the remaining board members have the experience needed to oversee the airline’s obligations and that operational stability remains a priority, particularly as the sector continues to face pressure from higher fuel costs linked to global geopolitical tensions.

The leadership changes are unfolding against renewed scrutiny of SAA’s financial position. The airline’s 2025 annual report showed 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). However, a significant portion of the improvement was supported by a R1.17 billion ($68.2 million) gain from asset disposals, including aircraft, property, equipment and intangible assets such as Heathrow landing slots.

Excluding those transactions, the airline’s profit before tax of R173 million ($10 million) would have shifted to a loss of nearly R996 million ($56.3 million), highlighting continued pressure on its core operations. SAA reported a load factor of 65 percent and a negative airline EBITDA of R443 million ($25.82 million), compared with a targeted positive R241 million ($14 million), underscoring the gap between recovery efforts and underlying performance.

$58 million equity dispute; Lamola resigns

About three weeks before Lamola announced his resignation, reports surfaced of more than R1 billion ($58 million) in additional government equity support during the 2024–25 financial year. The Department of Transport has said no direct state funding has been provided since 2023 and disputes characterizations of the equity injection as a bailout. The timing of the disclosure, alongside senior leadership departures, has nevertheless added to ongoing debate about the airline’s financial footing and governance direction.

Lamola’s compensation during the period also attracted attention. His pay rose 23 percent to R4.7 million ($0.27 million), while other executives recorded increases between 23 percent and 36 percent. SAA said it recognizes his role during a period defined by restructuring and operational recovery, adding that his departure marks the end of a phase focused on stabilizing the airline after years of sustained financial and operational strain.