South African Airways (SA, Johannesburg O.R. Tambo) has confirmed it received a ZAR1 billion rand (USD61 million) state guarantee in August 2026 to support working capital requirements amid pressure on its operations and finances from higher fuel prices.

"It is public knowledge that SAA received a ZAR1 billion government guarantee, which provides a mechanism for raising capital to support business operations," spokesman Mphilo Dlamini told ch-aviation.

The guarantee was disclosed on October 21, 2026, in finance minister Enoch Godongwana's Medium-Term Budget Policy Statement (MTBPS).

"Fiscal exposure to South African Airways increased during 2026 following pressure on its operations and finances from the fuel price shock. Government provided a ZAR1 billion guarantee in August 2026 to support working capital requirements," Godongwana said.

Dlamini stressed that the guarantee was a funding instrument rather than a direct cash injection. "SAA continues to pursue appropriate funding arrangements in support of its operational and financial requirements," he said.

The disclosure follows SAA's denial in July 2026 of media reports that it had secured a ZAR1 billion government-backed credit facility through Standard Bank. At the time, Dlamini described the reports as speculative and inaccurate. Standard Bank declined to comment to ch-aviation, citing client confidentiality.

According to the MTBPS, SAA also has about ZAR223 million (USD7.3 million) in government guarantees covering unflown-ticket liabilities and letters of credit.

"The residual risk depends on its ability to absorb these pressures and meet its operating and financing requirements without additional government support," Godongwana said.

Equity partner search

National Treasury director-general Duncan Pieterse did not rule out further government support for SAA during a media briefing ahead of the MTBPS, Moneyweb reported.

He said the National Treasury was working with the transport department to identify a strategic equity partner. The government was awaiting the outcome of transaction advisory work before determining whether the process would require additional fiscal outlays.

"SAA has already received around ZAR50 billion [USD3 billion] in bailouts over the years, and so the reason the strategic equity partner becomes important is so that we can permanently mitigate against that fiscal risk," Pieterse said.

Search for financing

SAA previously acknowledged efforts to secure additional liquidity. In 2025, the airline told ch-aviation it was working to obtain a financing facility to support operations. Former CEO John Lamola subsequently said SAA aimed to raise ZAR2 billion (USD122 million) as a cash buffer by April 2026, the end of the first year of its current turnaround plan.

The plan was intended to make the airline financially self-sufficient, relying on operating revenue and internal resources rather than government support. SAA has also pursued asset-based financing, including raising capital for its fleet requirements against assets such as its property portfolio, selling one of its two London Heathrow slots, and renewing the lease of its last Heathrow slot to British Airways.

The government has repeatedly said it would no longer provide open-ended, taxpayer-funded bailouts to the airline. In July 2025, transport minister Barbara Creecy said SAA was "self-funding its operations and fleet growth" while remaining open to a strategic equity partner as part of its long-term restructuring.