SriLankan records first fourth quarter profit since 2006

• Records group net profit of 
• US $ 1.7mn for quarter ended 
• on March 31, 2022
• Says accumulated over US $ 12mn in profits over last four months
• Says now back to 75% of passenger revenue it made pre-pandemic in 4Q of 2019-20
• Expects some headwinds in first half of this year with high fuel prices and dip in demand

SriLankan Airlines has recorded its first profitable fourth quarter (4Q) since 2006 for the financial year that ended on March 31, 2022, with a group net profit of US $ 1.7 million, despite the pandemic challenges. 

The airline said it 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 capitalising 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 US $ 12 million in profits over the last four months as traffic has returned after the pandemic,” a press release from the airline said.
SriLankan’s expansion initiative saw the launch of flights to several new destinations 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 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 said it is now back to 75 percent of the passenger revenue it made pre-pandemic in 4Q of 2019-20. Correspondingly, passenger numbers have also risen to near 700,000 for the quarter. 

“I am pleased to note that we ended 2021-22 on a high note, 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,” SriLankan Airlines Chairman Ashok Pathirage 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 minimising 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,” said SriLankan Airlines Acting Chief Executive Officer Richard Nuttall.