South African Airways (SAA) has looked at a “reset-the-clock” scenario, but at “this point in time there is no such action or need to take such action” to bring the embattled airline to commercial sustainability, acting CEO Nico Bezuidenhout said.

But, Bezuidenhout warned, “If we do not get the necessary agreements with all stakeholders, nothing is excluded.”

SAA—which was in a semi-permanent state of restructuring over the past decades as a loss-making airline despite South Africa being the largest and most-developed aviation market in Africa —received an additional loan guarantee of 6.5 billion rand ($521 million) from the South African government in January to keep it in the air.

Bezuidenhout says the airline is making good progress in its targeted turnaround and is reducing costs. “We’re not yet out of the woods, but we are seeing some positive signs in stabilizing the business,” he says. SAA successfully completed its 90-Day Action Plan in March, and operating results in April were 45% better than the year-ago period, Bezuidenhout says. The 90-Day Action Plan aims to deliver an EBITDA improvement of 1.25 billion rand per year from the start of its current financial year.

As part of the cost-cutting exercise, SAA is renegotiatingthe leases of its Airbus A340s. “There have been some unfortunate fleet decisions in the past. But don’t forget when we acquired the A340, fuel was at $20 a barrel,” asserts Bezuidenhout, adding that the airline operates the four-engined widebodies profitably on a number of routes, such as Frankfurt and Munich. Leases have been renegotiated for three of SAA’s eight Airbus A340s with a savings result of 112 rand million annually.

Renegotiations for the other five A340s are ongoing and expected to yield an additional savings of 150 million rand. Up to 440 million rand in pre-tax earnings improvements will come from network changes.

SAA has already abandoned two of its most money-losing long-haul routes, from Johannesburg to Beijing and Johannesburg to Mumbai.

The Beijing route reportedly lost about million rand per month, and the international network accounted for 1.6 billion rand in losses.

The acting CEO says SAA’s services to Perth, Australia, and Munich and Frankfurt in Germany are profitable. The South American routes are “marginal but improving,” while Hong Kong is already benefiting from ending the route to Beijing. The North American operation is expected to improve thanks to planned changes.

Beginning in August, the daily service to Washington Dulles will operate three times via Senegal and four times via Accra after SAA gained fifth-freedom rights from Ghana to the U.S.. The point-to-point market from Ghana is much larger than from Senegal and “we will benefit from feeder and de-feeder traffic. There [is] no feeder airline available to cooperate with in Senegal,” Bezuidenhout notes.

The network reconfigurations do not only include route terminations. There is also positive news, Bezuidenhout points out. “We started a new route to Abu Dhabi to complement our relationship with Etihad Airways.”

SAA is also growing its sub-Saharan African network “due to strong commercial demand” with more flights between Johannesburg and Maputo, Harare and Mauritius. “Africa is our bread and butter,” he says. “We target to increase revenue from Africa [by] 30% in the next 12-18 months.”