This is according to an assessment from its directors contained in its 2014/15 annual results.
These were tabled in Parliament on Friday after four extensions of the deadline, granted to enable the airline to secure further government guarantees and going concern status.
“As with previous years, SAA remains undercapitalised. Three consecutive years of operating losses have further eroded the capital base and this continues to impact on the ability of the business to operate in a highly demanding and competitive environment,” the directors noted.
They said that guarantees extended by government was adequate for the airline’s going-concern requirements in the short term but suggest that it will need a further capital injection.
“The directors however remain of the view that a more appropriate capital structure is required for the airline.”
The financial statements confirm that the airline suffered a R5.6 billion loss for the year. National Treasury this month extended a further credit guarantee for SAA of R4.7 billion but warned that several lenders will in coming months require payments on borrowings, which total R19 billion.
The airline’s financial results for 2015/16 were also due on Friday but have not been tabled yet.