SriLankan Airlines cut losses drastically in FY 2010

Sept 28, Colombo: Sri Lanka’s national career, SriLankan Airlines has drastically reduced its net loss to Rs. 202 million in fiscal year 2010 compared to the massive loss of Rs.6 billion incurred a year ago, the airline said on Wednesday.

The airlines’ revenue for fiscal 2010 ended March 31, 2011 was Rs. 78.5 billion rupees in the financial year compared to Rs. 63.4 billion in the previous year.

The overall objectives of the airlines in the next year will be to increase the revenue through high-yielding business activities and bring the financial performance to a level of profitability, the CEO of SriLankan, Kapila Chandrasena said in a statement.

In August the airline announced plans to expand its fleet to 28 aircraft in the next four years from the current fleet of 19, as Sri Lanka is experiencing a tourism boom following the end of the war in May 2009.

The government in July approved US$ 500 million as equity over five years on an annual basis to fix the airline over the next five years for the airline which has posted a string of losses.

According to the Central bank data, the airline posted losses of Rs. 12.2 billion in 2009 and Rs. 6.3 billion in 2010.

SriLankan Chairman Nishantha Wickremasinghe says the inflow of funds will allow the airlines to acquire new aircraft, in order to cope up with the increasing tourist growth and to make profits.

The carrier plans to increase frequency to Europe and also to Japan. The Asian destinations also would have additional flights by the end of the year.

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