One state-owned enterprise that didn’t need a bailout is making a comeback

The state-owned Airports Company South Africa (ACSA) continues to make a steady recovery, despite persisting operational challenges.

ACSA remains one of the country’s few truly self-sufficient state-owned enterprises (SOEs), not having ever required any government bailouts, unlike other SOEs such as Transnet, Eskom, and South African Airways.

Now, the newly appointed ACSA chairperson, Irvin Phenyane, said the company had recently returned to its pre-Covid-19 levels of profitability.

In an interview with 702, Phenyane said the company recorded a profit of R1.1 billion in 2025 and had been able to continue returning dividends to its shareholders.

“I was on the board just when Covid hit,” Phenyane said. “ACSA would have gone down if it was not a stable company. We lost R2.5 billion during Covid, and R1.5 billion the following year.”

“But ACSA recovered because of its resilience, because of leadership that is adaptive, and because of it being focused and having reserves. We’ve just returned to pre-Covid numbers.”

Phenyane explained that many other aviation companies are still struggling to fully recover from the pandemic and said ACSA would likely have made over R2 billion in profit had it not been for Covid-19.

During the 2019/20 financial year, ACSA reported departing passenger numbers of 20.9 million. By the following year, this had dropped 78% to just 4.6 million passengers.

According to the company’s latest financial results, departing passenger levels had recovered to 91% of pre-Covid levels, with 18.9 million passengers in 2024/25.

The company has also targeted R22 billion in infrastructure investment over the next five years, aimed at refurbishing and expanding the country’s major airports.

“We have already spent about R1.5 billion of it,” Phenyane said. “Most of these projects are going out on tender. 72% of that R22 billion is going to refurbishment and maintenance.”

“15% of it is going to expansion. The focus is not just on OR Tambo only. It’s focused on three major airports, those being Cape Town, OR Tambo, and King Shaka.”

Cape Town International Airport is set to receive a new, realigned runway and domestic arrivals terminal, while OR Tambo’s cargo terminal will be completely refurbished.

Operational difficulties continue to plague ACSA

ACSA’s road to recovery has not been without bumps. While the company continues to be financially stable, its operational efficiency remains challenged.

The Auditor-General of South Africa (AGSA) has consistently issued an unqualified audit opinion with findings on ACSA for over a decade.

This means that while the SOE’s financial statements were deemed to be clean, the AGSA reported material findings with regard to the company’s performance reporting and/or legislative compliance.

Recently, the Auditor-General flagged R99.8 million of irregular expenditure at ACSA for the 2024/25 financial year as a concern, as well as significant maintenance non-compliance.

Phenyane attributed this to the maturation of AGSA’s criteria and said that many things that were once seen as non-issues were now being frowned upon and had to be addressed.

He explained that the company has since identified three key areas for improvement, with improved supply chain management being the top priority.

“The second is to ensure that our service providers are able to pay us,” Phenyane said. “We are owed a lot of money by tenants at our various airports, so we are strengthening that.”

“And thirdly is to ensure that our commercial activities are strengthened so that we get more cash. So as it stands, it shows that the board is serious.”

Phenyane said the board would meet with its various stakeholders over the coming days to discuss these issues and how best to deal with them.

ACSA is also set to navigate a leadership transition over the coming months, with incumbent CEO Mpumi Mpofu’s six-year tenure ending on 30 June.

In a statement released on 14 May, the company commended Mpofu on her ability to lead the company through its tumultuous pandemic period.

Charles Silowa has been appointed to take over as Acting CEO from 1 July, and will oversee the company while the board seeks a permanent replacement.