Sri Lanka’s cash-strapped national airline says it recorded profits

APD NEWS

text

By APD writer Easwaran Rutnam

COLOMBO, Jan 22. (APD) – Sri Lanka’s cash-strapped national airline, SriLankan Airlines, on Monday said that it had achieved the highest ever monthly revenue in the history of the company in December 2017.

A statement by the airline said that the air-transport operation of the company recorded a stand-alone revenue of US Dollar 100.1 million – the first instance in the 38-year history of the airline where monthly operating revenue reached this landmark figure.

The airline attributes the increase in revenue to its expanded network and continuous improvement in revenue management processes. A total of 566,627 passengers were carried during the month, a 27% increase over December2016 and recorded a Passenger Load Factor of 85.9% - above that of most major airlines in the world.

The airline’s newly launched route to Melbourne, Australia, was a resounding success – achieving a Passenger Load Factor of 92.4% - and recording a significant overall profit during the month. This makes Melbourne the first long-haul route launch of the airline in recent years to reach profitability in such a short period.

The airline also recorded a successful month in terms of operational efficiency, recording an average aircraft utilization of 13.8 hours per day.

The company recorded a net positive result for the month even after interest costs, with an un-audited net profit of USD 3.0 million. However, the management stresses that this positive result is only a beginning, especially considering the fact that oil prices have increased by over 25% compared to December 2016.

The airline has been looking for foreign investors after it suffered major losses over the past few years.

(ASIA PACIFIC DAILY)