SriLankan to break even in 2022 | Daily News

SriLankan to break even in 2022

Manager Corporate Communications, Deepal Perera,CEO, Richard Nuttal and Head of Worldwide Sales and Distribution, Dimuthu Tennakoon, SriLankan Airlines at the event. Picture by Shirajv Sirimane
Manager Corporate Communications, Deepal Perera,CEO, Richard Nuttal and Head of Worldwide Sales and Distribution, Dimuthu Tennakoon, SriLankan Airlines at the event. Picture by Shirajv Sirimane

SriLankan Airlines will be able to break even and may even make profits this financial year, predicted Chief Executive Officer SriLankan, Richard Nuttal, yesterday.

He said to achieve this, the current country situation should remain as it is and also the aviation fuel should not increase by high amounts. The CEO also said that they are expecting a high number of tourist arrivals especially in the months of December and also January which will take the airline closer to that target. “We expect a load factor around 80% during these months.”

He also said that due to prudent management the operational cost too has been reduced and this too would contribute to higher revenue. “Our Aviation Seat per KM (ASK) has reduced from USD 4.10 to 3.04.” This is highly praiseworthy as it is lower than major airlines’ ASK’s like Emirates, Turkish airlines. The CEO also said that some of the routes are yielding high revenue along with cargo.

However he said that the high interest rates towards debt servicing are still an issue and they expect to pay around USD 100 million towards this next year. Nuttal said that to increase revenue they are also stuck with the lack of aircraft and they have only 19 and around four are grounded without engines. “We expect them to be ready mid next year.”

Asked how many aircraft are needed for the airline he said they need at least seven and they have submitted a proposal for the Cabinet in this regard. “Being a SOE we are unable to get the required capital from the government but the airline has the ‘needed finances’ to go in to ‘lease’these aircraft.”

Asked to comment on aviation fuel shortage he said that they are not experiencing this issue. “However we have to spend around USD 40 million from our revenue to service the airline fuel bill.”

“The government restructure initiative towards SriLankan will not have any change in our plans.”

Commenting on the expansion of their route network he said they will soon add South Korea to their radar once again next year along with another new destination in India. “We will also have double dailies to London, Singapore, Thailand and Kuala Lumpur.”

 


SriLankan hosts Global Sales Conference towards tourism revival

The SriLankan Airlines’ Global Sales Conference came to a successful conclusion having showcased the country’s readiness for tourism to over 150 of the world’s premier travel agents and tour operators during a four-day programme.

“The conference drew the largest contingent from the international travel trade to Sri Lanka in recent history,” said Chief Executive Officer Sri Lankan, Richard Nuttal, yesterday. The assemblage experienced Sri Lanka’stop-rated tourist attractions firsthand before convening in Sigiriya to learn about the outlook of Sri Lanka as a destination that is not just magnificent, but safe and more than ready to receive global travellers to its shores.

Foreign General Sales Agents of the airline and SriLankan Holidays’ Franchise Operators also participated in the symposium in addition to travel trade industry representatives.

He also said that participants were somewhat carried away by the negative publicity that was generated against Sri Lanka in international media in the past 8 months. However after the visit their perspective completely changed from negative to positive.”

 


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