SAA grapples with cancellations on J’burg route as COVID-19 hits South Africa

Ailing South African Airline (SAA) has been faced with increased flight cancellations on the Johannesburg route from Zambia’s Ndola, Livingstone and Lusaka. This is in the wake of rising cases of coronavirus infections. As at 6.38pm according to the Novel Corona online map, South Africa had 64 recorded cases of infection.

The airline was offering one free ticket change and for those requesting for refunds, the standard terms and conditions still applied of unused taxes. SAA has seen increased cancellation in the last one week as Africa’s most industrialized economy recorded COVID-19 cases. The airline also recorded an uptick in ticket purchases from clients seeking to repatriate family in South Africa back to Zambia.

The Zambian health authorities last week introduced legislation around tighter monitoring and preventive measures to curb potential infections. The Southern African nation enjoys a fair share of trade with Zambia as 33% of the copper producers imports are from South Africa. Tourism business is forecast to be affected on the Livingstone route as Air link faces similar cancellations. The Kwacha Arbitrageur in a Market Note forecast a steep decline in tourism levies and hotel occupancy given the travel bans imposed by South African and Zambian corporates into and out of respective jurisdictions.

With SAA on business rescue, the pandemic could worsen its financial position in revenue losses. The 80-year old airline will commence retrenchments to affect over 5,000 of its workforce as its seeks to lean its operational cost base.

The Kwacha Arbitrageur