Dubai: Srilankan Airlines reported a net profit of Rs 1,124 million in the nine months to December 2023, turning around from a loss of SLR 73.26 billion for the full year ending March 2023, and official data shows.
The airline earned revenues of SLR 248 billion in the nine months to December 2023, with SLR 205.6 billion in passenger income, SLR 22.6 billion in freight, and SLR 18.7 billion in unspecified other income.
“We had profits last year (to the year ending March 2023). The challenge we have got is that the underlying business is profitable. These last couple of months, it is slightly underwater because we’ve got too many aircraft on the ground,” the CEO of Sri Lankan Airlines, Richard Nuttall, (Pictured) told Gulf News.
“The airline has a fleet of 23 leased aircraft but we have four on the ground due to engine problems. “So, when we get them all flying again, that turns around. The challenge we’ve got is that we have quite a lot of legacy debt that we have to pay off.”
The government took off 30% of the airline’s debt in December last year. Commenting on the airline’s network expansion plans, Nuttall said, “There is a list of two to three cities we want to fly”
Nuttall said the expansion plans were mostly concentrated in the regional markets, including the Indian subcontinent and Southeast Asia.
“Before we add too many flights to other markets, we are still short on aircraft and have two or three places where we fly less than daily and that is not a good idea. So, in places like Paris and Frankfurt, Pakistan, we want to fly daily.”
Moreover, the airline CEO also wants to boost inbound passenger traffic to Sri Lanka, as tourism to the country is still ‘underserved’. Meanwhile the government had received bids from six firms for the stake sale from AirAsia Consulting Sdn. Bhd., Dharshaan Elite Investment Holdings (Pvt) Ltd, FITS Aviation Private Ltd., Sherisha Technologies Private Limited, Treasure Republic Guardians Limited, and Hayleys PLC.
The Minister of Ports, Shipping and Aviation Nimal Siripala de Silva said, “We didn’t find anyone worthy among them. Even if we were to extend this opportunity to a Sri Lankan entrepreneur, their capabilities would need to be demonstrated. The parties should have a strong balance sheet and expertise, as the jobs of 6,000 people are at stake.”
He said in a statement that the government has now decided against selling a minority stake of 49% of Sri Lankan as none of the bidding entities was deemed “worthy.” Instead, the airline will undergo restructuring as suitable.
