South Africa’s oldest airline struggles to pay staff in full as financial crisis deepens

South African Airways (SAA) is facing renewed financial pressure after staggering salary payments for a second consecutive month, raising fresh questions about the national carrier’s ability to sustain its operations without government support.

The airline’s financial difficulties came into focus again in October 2026 after trade union Solidarity raised concerns about outstanding salaries and other payments owed to employees. The developments have renewed scrutiny of the state owned airline’s cash flow, management and long-term financial sustainability.

Founded in 1934, SAA is South Africa’s oldest airline. Despite a major restructuring process and a return to commercial operations, the carrier is once again under pressure to demonstrate that it can operate on a financially sustainable basis.

The salary delays affect staff at both SAA and its technical subsidiary, South African Airways Technical (SAAT). Solidarity has also raised concerns about disputes involving overtime payments and other allowances at SAAT.

The situation is particularly concerning for employees who depend on their monthly salaries to cover essential expenses such as rent, home loans, school fees and other household commitments.

Solidarity’s aviation sector coordinator, Derek Mans has called on management to explain the reasons for the delays and introduce measures to prevent them from happening again.

The union argues that employees should not be left carrying the consequences of the airline’s financial difficulties.

SAA, however, has previously said its staggered payment arrangements are intended to manage liquidity pressures while maintaining operations. According to aviation industry publication ch-aviation, the airline’s September and October 2026 arrangements affected pilots, management, specialists, executives and board members, while cabin crew and ground staff continued to receive their salaries on the normal payday.

The latest salary delays follow a government guarantee of R1 billion made available to SAA in August 2026 to support its working capital requirements.

The guarantee was disclosed by Finance Minister Enoch Godongwana during his October budget update. It is intended to help the airline raise financing and is not the same as a direct cash payment from the government.

The development has renewed questions about whether SAA can generate enough operating cash to meet its obligations without further state assistance.

Parliament’s Standing Committee on Appropriations has requested an update on the airline’s financial position, including its 2025/2026 audit, the use of proceeds from the sale of a London Heathrow Airport slot and whether further government support may be required.

The committee’s request follows concerns raised by employees about executive appointments and the accuracy of SAA’s financial position. These allegations have not been established as fact, and the committee has not reached a conclusion on them.

SAA emerged from business rescue in 2021 after years of financial distress and extensive restructuring. The airline subsequently expanded its fleet and route network, and it reported a headline profit for the financial year ended March 2025.

However, that reported profit has not prevented the airline from experiencing fresh liquidity problems.

Aviation specialist Joachim Vermooten told eNCA’s sister broadcaster, 702, that SAA may have expanded too quickly after business rescue without securing sufficient additional capital to support its growth. He also questioned whether the airline’s available cash was sufficient to fund its ongoing operations, given that some funds were earmarked for other purposes.

Higher fuel costs and geopolitical disruptions have added pressure to airlines, but Vermooten argued that SAA’s leadership and financial management issues also need to be addressed.

The distinction is important: a company can report an accounting profit while still experiencing cash-flow difficulties if money is not available when bills fall due.

Solidarity believes SAA needs a strategic equity partner capable of contributing not only capital but also commercial expertise, stronger management and long-term operational discipline.

The government has also been exploring options for bringing in a strategic partner as it considers how to reduce the risks associated with being the airline’s sole shareholder. Previous efforts to sell a majority stake to the Takatso Consortium did not proceed.

A successful partnership could potentially strengthen the airline’s finances and reduce its dependence on government support. However, its outcome would depend on the terms of any agreement, the partner’s contribution and SAA’s ability to manage its costs and operations.

For now, the repeated salary delays highlight the need for clarity about the airline’s cash position and a credible plan for meeting its financial commitments.

SAA’s immediate challenge is to resolve the salary delays and restore confidence among employees, unions and the public. The longer-term challenge is to demonstrate that its operations can be sustained without repeated financial emergencies.

The government must also explain how the latest guarantee fits into its broader plan for state-owned enterprises and whether further support could be necessary.

The bottom line South African Airways is facing renewed financial scrutiny after staggering salary payments for a second consecutive month and receiving access to a R1 billion government guarantee. While the airline has reported a profit in the past, its current cash-flow difficulties raise questions about whether it can sustain its operations and meet its obligations without further support from the state.

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