SriLankan Airlines Profitable Again after 16 Years

[In The News]

DALLAS – Sri Lanka-based state carrier SriLankan Airlines (UL) has announced a profitable fourth quarter for the first time since 2006.

The oneworld alliance member’s fourth quarter ended on March 31, 2022, at a value of US$1.7m.

Ashok Pathirage, Chairman of SriLankan Airlines, was pleased to note that the carrier ended 2021-22 “on a high note, having given our first quarterly profit in many years.”

“The passenger demand remained strong, and revenues continued to recover from the setbacks of the pandemic during the quarter. Our annual expenditure remained within expectations. I am thankful to all our valued employees for contributing towards this achievement.”

Richard Nuttall, Acting Chief Executive Officer of SriLankan Airlines, said, “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.”

Nuttall added that traffic was 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.”

SriLankan Airlines 4R-ALH Airbus A330-243 (One World livery). Photo: Alberto Cucini/Airways

Post-pandemic Recovery

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Like all, UL suffered through the pandemic and took drastic measures to stay afloat. Scaling down staff costs, renegotiating supplier contracts, increase in cargo capacity and revenue, and also planning ambitiously for when travel demand returns. Seoul, Moscow, Kathmandu, and Paris were newly added destinations.

Sri Lanka is a major tourist attraction and UL is at the forefront of bringing in these tourists from a variety of cities. At present UL’s fleet comprises 24 Aircraft in total – a mix of the Airbus A320, A321neo, and the A330-300.

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Featured image: SriLankan Airlines 4R-ALN Airbus A330-343. Photo: Alberto Cucini/Airways

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