The acting Chief Executive Officer of South African Airways (SAA), Matshela Seshibe, has expressed confidence that the airline will withstand rising jet fuel costs and supply pressures as the global aviation industry grapples with the effects of the ongoing Middle East crisis.
Speaking following his assumption of the role at the beginning of May, Seshibe outlined that his immediate priorities include strengthening compliance and ensuring good governance across the airline. He noted that SAA is relying on strong shareholder backing as well as support from suppliers and customers to navigate current challenges.
The airline is facing mounting pressure from rising jet fuel prices driven by the conflict, which has led to the introduction of a fuel surcharge on bookings.
“We’ve got a variety of stakeholders that recognize this to be not a one-company issue but a team issue that needs to be addressed on an integrated basis with the suppliers,” Seshibe said. “For example, we are looking at credit terms. We are looking at cost absorptions. We are looking at cost reductions.”
He added that internally, SAA is “sharpening our pencils” to ensure any leakages identified by the Auditor General are closed. The airline is collaborating with its agents and, like other carriers, has had to share the burden of higher fuel prices with customers through fare increases and higher fuel levies.
“It’s not just one item that we are doing. It’s a combination of things,” Seshibe stated.
Beyond immediate pressures, his focus is also on strengthening governance and implementing controls across the airline’s value chain. “The aviation industry is going through turbulence at the moment because of what’s happening in the Middle East. There has been a significant increase in the price of aviation fuel which is affecting the entire industry. SAA is not spared that,” he said. “We are grappling and we have come up with multiple initiatives internally to resolve that. Beyond these two immediate priorities, then it’s about growing the business.”
Responding to criticism surrounding his appointment, Seshibe defended his experience, saying he brings extensive leadership and institutional knowledge of the airline.
“I’m talking about an individual with more than 30 years’ experience as a business executive in multiple industries. Someone who’s been with SAA since 2024, has been part of EXCO, and who’s been part and parcel of the crafting of some of the current strategies that we are putting in place,” he said. “Somebody that has led projects within SAA as a group to improve efficiencies, revenue growth management, and even compliance. I am not new to leadership, and certainly I’m not new to SAA. But at the end of the day, what’s going to be important is the execution of the strategy that we have in place.”