SAA halts Malawi service as economic crisis deepens
SAA said it will monitor the economic instability and seek to restore service when the route once again becomes financially viable.
JOHANNESBURG, South Africa— South African Airways has suspended all flights to Malawi due to the spiralling economic crisis in the southern African nation, officials announced, writes Naome Chisala.
SAA said it carefully weighed Malawi's tumbling currency, scarce foreign reserves and growing issue of blocked funds before deciding to indefinitely cancel service to Lilongwe and Blantyre airports starting November 30.
"We were observing the situation of substantive devaluation of the Malawian Kwacha, intense foreign currency shortages, and the increase of blocked funds closely before deciding to halt the route," the airline said.
SAA only resumed international operations last year after emerging from a prolonged bankruptcy triggered by graft and mismanagement.
CEO John Lamola said the airline — still on shaky financial footing — cannot risk commitments to unsustainable routes.
“As the new leadership of SAA — and as a small but growing airline — we cannot commit to routes that are not financially sustainable,” Lamola explained.
"This move should not signal reduced support for Malawi."
He emphasized SAA remains eager to serve the Malawian market and bolster economic ties between the countries once conditions improve to warrant profitable flights.
"SAA values its relationship with the Malawian market and thanks its customers for their understanding during these extraordinarily challenging times," Lamola added.
Malawi is grappling with dwindling foreign reserves, inflated prices for imports like fuel and fertilizer, and the impact of a devastating cyclone that killed over 60 residents in 2019.
SAA said it will monitor the economic instability and seek to restore service when the route once again becomes financially viable.