Story audio is generated using AI
Crisis-ridden state airline South African Airways (SAA) is fast running out of runway after informing staff that salaries will be late for the second consecutive month.
TimesLIVE has learnt that SAA acting chief human capital officer Lourens Erasmus issued a communique to staff informing them the salaries would be staggered, with ground staff and cabin crew being paid on October 27, while executives will be paid on October 31. Pilots would be paid on October 28, while management and specialists would be paid on October 30.
“SAA apologises for any inconvenience caused and appreciates employees’ understanding.
“Employees who require a letter for submission to their bank confirming the revised salary payment date may request one from their HRBP,” the internal memo said.
This latest communique follows a similar one in September, an insider with intimate knowledge of the situation but who did not have permission to speak to the media, said.
Last month’s salaries were only paid around October 2, the source added, saying some service providers were now demanding pre-payment, and that the airline was only operational through bank credits.
“SAA is running out of money, and may soon be grounded,” the source said.
The breaking news comes as the airline continues to face substantial financial and operational headwinds, characterised by a mix of escalating operational costs, governance transitions, and a reliance on state guarantees.
According to the National Treasury’s medium-term budget policy statement (MTBPS) tabled on Wednesday, SAA’s fiscal exposure expanded during 2026 due to severe pressures placed on its day-to-day operations by the global jet fuel price shock.
To buffer the national carrier against these cash flow constraints, the government provided a R1bn guarantee in August to fund its immediate working capital requirements. The Treasury further noted that SAA holds an additional R223m in government guarantees related to unflown-ticket liabilities and corporate letters of credit, warning that the airline’s residual risk heavily depends on its ability to absorb these operational pressures without requesting further direct state support.
On Thursday afternoon, SAA spokesperson Mphilo Dlamini said: “South African Airways takes its responsibilities towards its employees seriously and recognises the importance of ensuring that salaries are paid timeously.
“Against this backdrop, management has fully engaged employees on this matter and explained that the measures being taken are intended to manage the sustainability of the business and its ability to continue operating,” Dlamini said.
“A majority of the employees will be paid on time ― normal pay day (October 27).
“Those who will receive their salaries later, it will be delayed by only a day or two,” he added.
He also said, as with other airlines globally, SAA is operating in a challenging and volatile aviation environment, with geopolitical developments contributing to increased operating costs, particularly fuel.
“These external pressures add to the airline’s cost base and place pressure on liquidity, requiring management to make difficult but necessary decisions to safeguard the business and ensure its long-term sustainability.”
This is a developing story.
This article has been amended to show that ground staff and crew will be paid on their normal pay day, October 27, and also to add additional comment from SAA.
TimesLIVE
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.