As global jet fuel prices continue to climb, putting pressure on airlines worldwide, South African Airways (SAA) is projecting confidence rather than concern. Acting Group CEO Matshela Seshibe assured stakeholders this week that the national carrier is not only prepared for the uptick in operating costs but is also strategically positioned to navigate the volatile energy market.
“Yes, fuel is our single biggest operational expense, and yes, prices are rising. But panic is not part of our flight plan,” Seshibe said during a media briefing in Johannesburg. “Thanks to the unwavering support of our shareholder—the South African government—and meticulous financial planning over the past 18 months, we are far better insulated than many might expect.”
Jet fuel prices have surged by nearly 30% in the past six months, driven by geopolitical tensions, supply chain disruptions, and a post-pandemic rebound in global travel demand. For many carriers, this has meant reduced margins, route cutbacks, or increased ticket prices. However, Seshibe emphasized that SAA’s restructuring efforts following its business rescue process have left the airline leaner, more agile, and less vulnerable to external shocks.
“We’ve built contingency buffers into our fuel hedging strategy,” Seshibe explained. “We’re not simply reacting to price spikes. We anticipated volatility and structured our procurement to smooth out the highs and lows. That, combined with ongoing cost discipline across the organization, means we can absorb much of this pressure without immediately passing it on to passengers.”
The acting CEO also pointed to SAA’s renewed route network, which prioritizes high-demand regional and domestic destinations over long-haul, fuel-guzzling routes. “We’re flying smarter, not just farther,” he said. “Our fleet utilization has improved, and we’re seeing stronger load factors, which help spread fuel costs across more paying passengers.”
Shareholder confidence remains a cornerstone of SAA’s resilience. The government, which owns 100% of the airline following a failed strategic equity partnership, has reaffirmed its commitment to keeping SAA airborne. Public Enterprises Minister Pravin Gordhan recently indicated that additional financial support mechanisms—including guarantees and access to bridging finance—remain available if needed.
Still, industry analysts urge cautious optimism. “SAA has made remarkable progress since exiting business rescue, but jet fuel is a notoriously unpredictable variable,” said aviation economist Thando Mkhize. “The airline’s leadership is right to talk up their preparedness, but sustained high fuel prices could still force tough decisions later in the year—especially if ticket demand softens.”
Seshibe acknowledged the risks but struck a defiant tone. “We’ve come back from far worse than high fuel prices. SAA is not just surviving; we are rebuilding with discipline, determination, and the full backing of our shareholder. The turbulence won’t knock us off course.”
The airline is set to release its quarterly performance report next month, which will offer a clearer picture of fuel costs’ impact on operating margins. For now, SAA’s message to travelers and investors is clear: the lights stay on, the planes keep flying, and confidence remains high.
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