ACSA reports first profit since Covid-19 pandemic

It marks the first time ACSA has managed to turn a profit since the COVID-19 pandemic and has been attributed to increased air travel and more efficient operations.

The state-owned company previously had significant financial losses, including a R2.5 billion deficit in the 2019/20 financial year, followed by losses exceeding a billion rand in the previous year.

During a media briefing at OR Tambo International Airport on Wednesday, ACSA CEO Mpumi Mpofu credited the company's financial resilience to strategic preventative measures, warning that without these steps, the state-owned entity might not have survived.

“The period of loss we experienced was also accompanied by a clear financial decision to cut our capital expenditure and limit at under R1 billion. If we had not done that, we probably would be speaking of a company that never survived COVID.”

Mpofu also addressed the cause behind the broken shaft valve that disrupted flight operations in December, leading to the cancellation of 54 flights at OR Tambo International Airport.

 READ MORE: Flight delays as refuelling ‘challenges’ hit OR Tambo

She confirmed that the company had received a draft report from experts on the issue and is now awaiting the final version. 

“This is quite important for us because we don’t want people to reach their own conclusions; only the engineers and the laboratory can tell us what happened. So, there could be a number of possibilities such as heat, acidic environment.”

ACSA also raised alarms over fuel security following a fire at the National Petroleum Refiners in Sasolburg, which forced operations to shut down and halted jet fuel supplies to airports.

Mpofu confirmed that while there was enough fuel to cover January's demand, the outlook for February remains uncertain.

“In our consultations, both our stakeholders- the fuel association, airlines, Transnet, Department of Minerals, Petroleum and the Department of Transport, we were able to work together to ensure that they secure fuel.

“The contract is signed between the jet fuel supplier and the respective airlines.”

She stated that the recent jet fuel valve failure at OR Tambo International Airport and cable issues at Cape Town International Airport highlighted the ongoing deterioration of infrastructure.

ALSO READ