SriLankan Airlines records its first profitable fourth quarter (Q4) since 2006 for the financial year that ended on 31 March 2022 with a group net profit of USD 1.7 million despite pandemic challenges. The airline was able to achieve this financial turnaround through various measures in its 2021-22 financial year including scaling down staff costs and overheads; renegotiating supplier contracts; increasing cargo revenue; and creating an ambitious growth plan capitalizing on pent-up travel demand. The initiatives paid off, with SriLankan making its first monthly profit since the onset of COVID-19 in December 2021 and continuing with a profit in the final quarter. The airline now has accumulated over USD 12 million in profits over the last 4 months as traffic has returned after the pandemic.
SriLankan’s expansion initiative saw the launch of flights to several new destinations in the last year including Seoul; Moscow; Kathmandu and Paris. Frequencies were also gradually increased across the airline’s network in line with the recovery of the global travel industry and demand. The airline has also carried out major campaigns to boost tourism to the country including a major initiative in India, roadshows supporting new routes and most recently sponsoring the popular French annual adventure trail, Raid Amazones, in March of this year.
The airline is now back to 75 per cent of the passenger revenue it made pre-pandemic in Q4 of 2019-20. Correspondingly, passenger numbers also rose to near 700,000 for the quarter. The airline is making strong headway towards matching pre-pandemic levels as demand for international travel recovers. The payoff is not limited to the airline, as it remains by far the largest carrier of tourists to Sri Lanka. SriLankan is also a net foreign currency earner for the country owing to a sizeable share of its revenue being generated from international markets.
Reflecting on the significance of the airline to the country, Ashok Pathirage, Chairman of SriLankan Airlines stated, “For the past four decades, we have been flag bearers of the nation through thick and thin. SriLankan Airlines has not only prevailed through each challenging chapter that the country has had to navigate through, but endeavored to help the country back on its feet. From sustaining travel and trade links between Sri Lanka and the world as other airlines cut back on flights to Sri Lanka due to the country’s ongoing economic crisis to bringing down stranded Sri Lankans home during the thick of the pandemic in the recent past, SriLankan has always been a pillar of strength to the nation. The resilience of our legacy is really the resilience of our people, and I would like to thank every employee of SriLankan Airlines for their show of dedication and commitment that has seen us through difficult times.”
“We anticipate some headwinds in the first half of this financial year with high fuel prices and a short-term dip in demand to Sri Lanka. We have factored in these challenges and are working towards minimizing the impact with a strong business plan and a sound turnaround strategy to return to full-year profitability. Traffic is expected to recover fully by the end of the year as travel restrictions are eased off further. We will continue to support the tourism industry of Sri Lanka and be a catalyst for economic recovery,” added Richard Nuttall, Acting Chief Executive Officer of SriLankan Airlines.
