Posts Profit

ANN News-Spy Thomas (in Cape Town) told us, "I saw this story this morning, and it is newsworthy, seeing as SAA seems to be bucking the international trend." Right you are!

The long and the short of it seems to be that, in the face of expensive fuel, war, SARS, and who-knows-what, Johannesburg-based South African Airlines made money.

SAA CEO Andre Viljoen said the effects of the airline world's disasters have been light, from his airline's perspective: "We've only had to cut back some Hong Kong lines," he said.

The airline is planning the conventionally unthinkable: expansion. Its plans include renovation (and population by 2005) of the now-abandoned domestic terminal at Johannesburg, as well as the possible purchase of a half-dozen A380s, according to the South African News 24 outlet.

The airline, which lost 2.5 billion Rand two years ago (and an operating loss of 1.3 billion last year), has added capacity and new A340-600s, boosting capacity. They're apparently filling them up, too. Viljoen said, "We've moved more cargo out of Hong Kong in three months than over the whole previous year." Translation? Overall, operating profits are up -- SAA just posted a quarterly profit "in excess of R50 million [$6.8 million US]."

FMI: www.flysaa.com