South African Airways' profits fell by 90 percent from R648-million to R65-million in the financial year to March 31, the company said on Thursday.

Addressing reporters and financial analysts in Kempton Park, SAA chief executive Khaya Ngqula said the reason for this was a strike last year, a 51 percent increase in the oil price and competition from low cost airlines.

Nevertheless Ngqula was optimistic about the airline's future prospects.

"We have a team in place which had paid their school fees.... and are all very keen to prove their worth and to do what this airline is capable of doing, going forward."

He also said: "We have no one to blame", and that South African Airways had learnt from experience.

He pointed out the International Air Transport Association (Iata) estimated that the global airline industry lost about $6-billion in 2005.

Acting chief financial officer Gareth Griffiths said that under the circumstances this was "sterling effort" and he praised SAA personnel for their hard work.

Sapa

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