South African Airways has blamed unprofitable routes and a weaker rand for an operating loss of R991 million ($88.9 million) in the 12 months to March 2013.
The state-owned carrier was most affected by currency changes, according to chief financial officer Wolf Meyer.
Higher fuel costs and competition from Middle East carriers affected SAA’s long-haul routes, all of which were unprofitable, the company said.
Meyer said Middle Eastern carriers capitalising on the liberalisation of the African market had been a factor in restricting SAA’s recovery.
The airline announced last year that all its long-haul flights were loss making, however, it had to retain those routes that were of strategic importance to its shareholder, the South African government, such as the route to Beijing.
