Acsa’s annus horribilis as FY loss hits R2.6bn

Despite the devastating impact of Covid-19, group says the worst is over and its balance sheet remains strong.
OR Tambo International Airport, the biggest and busiest air gateway in Airports Company South Africa's portfolio. Image: Supplied

Airports Company South Africa (Acsa) – the state monopoly that controls nine of the country’s main airports – reported a loss of R2.6 billion on Tuesday for its financial year ended March 31, 2021.

This represents the worst financial performance in Acsa’s 28-year history, group CFO Siphamandla Mthethwa confirmed during a results presentation.

However, Mthethwa stressed that this came in the context of the “devastating impact” of the Covid-19 financial fallout “on the aviation sector globally”.

He said the sector has seen losses of around $125 billion worldwide.

Read:
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Pandemic plunges Acsa into R1.47bn half-year loss

Acsa has historically reported annual profits and has been one of the better operated state-owned enterprises.

“The R2.6 billion loss for FY2021 is the group’s second-ever loss…. But Acsa was in a strong financial position before Covid-19, which enabled us to go into the pandemic with a stronger balance sheet,” Mthethwa pointed out.

“As we sit here today, we are in a much stronger position as the aviation sector recovers,” he said, adding that Acsa had taken “decisive action” to boost its liquidity to weather the Covid storm.

Read:
Acsa faces major losses from Covid-19 fallout
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Some of the measures included cutting back on capital and operating expenditure, raising R2.3 billion via a state-backed preference share debt instrument, and the sale of its stake in India’s Mumbai International Airport.

Acsa saw passenger numbers for the year to the end of March 2021 plunging to just 4.6 million, compared with around 21 million passengers in the prior financial year, or pre-Covid.

This resulted in the group’s revenue plummeting from R7.1 billion in its financial year ending March 2020, to R2.2 billion for its 2021 financial year.

Worth noting is that its 2021 financial year is made up of much of last year, when Covid-19 hard lockdowns and travel restrictions hit the start of its first half in April.

Regarding the Covid-19 financial fallout, Mthethwa said he believes that “the worst is over”.

He reiterated that Acsa’s balance sheet remains strong and the group continues as a going concern, with R32 billion in assets, despite posting an operating loss last year due to Covid-19.

Acsa CEO Mpumi Mpofu said despite the devastating impact of the pandemic, the group moved swiftly to deal with the situation.

She said while international air traffic into SA will take longer to recover to pre-Covid levels, domestic air travel is seeing a more robust recovery.

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What happened to the super profits from the preceeding 15 years?

Seems the ANC cadres are incapable of running any SoE effectively or even profitably – maybe all the top exec.s of these SoE should have salaries aligned to performance – poor performance = zero salaries

Lots of fire pools built in the last 15 years.

A R2.6 Billion loss for a state run monopoly is probably considered acceptable .
Who cares whilst taxpayers are captive ?
Well my kids have just escaped captivity together with their contribution to the fiscus .
These idiots in Govt have no ideas how quickly they are collapsing the Amandla State ;

I ACSA cannot make it then no one can.

They charge every passenger nearly as much a the air ticket itself.

If they fail they will also come to the TAX payer.

Isn’t this the same company that rips off airlines and passengers with “taxes”?

Isn’t this the same company that charges R100 per hour for parking at their airports?

Hulle kan maar gaan vlieg!

…. and the hits just keep on coming. In 5 years’ time everyone in govt will just shrug their shoulders and ask what happened?

This is Dali Mpofu’s wife running this set up………….enough said the GK is still coming.

arghhhhh. Another solar plexus blow. Can this be true ?

True, Robert Hersov mentioned it last week.

It amazes me how these SOE’s act like they are bona fide businesses when all they do is take their expenses from last year and add 10%. I remember also a few years ago the minority shareholders in ACSA were trapped with their shares after failed govt promises of listing ACSA.

End of comments.

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