By: Staff Writer
Colombo (LNW): As demand for air travel continues to grow, the prospects for the SriLankan Airlines remain positive, SLA Chairman Asoka Pathirage claimed.
Despite the increase of Rs 51.5 billion in interest, the airline recorded satisfaction profitability for the first time in a decade and a half (unaudited USD management accounts).
SLA’s prudent resource optimisation efforts and efficiency improvements, coupled with a more favourable macro economic environment that bolstered tourismand air travel in the latter part of the year, played pivotal roles in achieving this progress.
In the 12 months to March 31, 2023, SriLankan posted a local currency loss of Rs.75.03 billion (USD232 million) on revenues of Rs 365.17 billion (USD1.13 billion), SLA annual report revealed.
However, this loss was due to the Rs currency depreciation and the impact on USD-denominated debt.
While SriLankan Airlines’ revenue for the year ending March 31, 2023 saw group revenue soar to Rs. 369,470 million against Rs. 134,301 million in the earlier year, the year ended with a reduced loss of Rs. 71,306 million compared to Rs.163,583 million in 2021/2222,
The operating profit was Rs.43,371 million vs Rs.1,692 million in the previous year while operating expenditure was Rs.329,856 million vs Rs.133,222 million. Aircraft fuel costs were Rs. 155,559 million against Rs. 42,759 million (2021/2022), an increase of 263.80 per cent.
In positioning the airline on a trajectory toward expansion, SriLankan Airlines will improve operations across multiple fronts, encompassing service enhancements, human resource development, training programs, equipment upgrades, and process refinements, all aimed at sustaining service excellence and customer loyalty.
It will also focus on expanding maintenance revenue by securing contracts with new customers in Sri Lanka and the South Asian region.
Additionally, the airline will remain committed to fleet assurance with the prompt execution of procurement initiatives while building a strong network through effective analysis of the most lucrative revenue-generating prospects.
In his review, airline chairman Asoka Pathirage said that in the latter part of the year, the airline demonstrated a recovery compared to the previous year, benefiting from a better operating environment and with the operational improvements made in response to the challenges faced.
“One of the primary challenges was the persistent rise in global inflation, which had a cascading effect on economic activities.
It led to a cost-of-living crisis and the tightening of financial conditions in various regions. This situation was further exacerbated by geopolitical tensions, particularly the conflict in Ukraine, and the lingering impact of the COVID-19 pandemic.
These macroeconomic challenges directly influenced the aviation industry, creating a distinct set of problems,” he said.
