SriLankan Airlines breaks even for first time in over a decade

As per unaudited accounts, the airline made US$ 3mn profits in FY ended March 31, 2023
National carrier, SriLankan Airlines says it has broken even for the first time in over a decade as the airline made a US$ 3 million profit in the latest financial year ended March 31, 2023.

Presenting unaudited figures, which the airline said might vary slightly during the finalisation of the year-end accounts, a statement from SriLankan said it generated a passenger and cargo revenue of US$ 994 million and an operating profit of US$ 53 million.
“The operating profit at group level was US$ 104 million. The group, however, incurred financing costs of US$ 101 million, resulting in a profit of US$ 3 million,” the statement noted. 

SriLankan Airlines Chairman during the recent COPE meeting said the airline had received no funding in the last two years, and continues to operate using its own cashflows.
“The airline maintains operating margins in line with the best industry standards. We are optimistic that these will be stronger in the year ahead as the country moves forward from the challenges of 2022. As discussed at the COPE meeting, the biggest challenge yet is the country’s situation and extremely high financing costs,” the statement said.

Meanwhile, clarifying on recent media reports on over half a billion US dollars net loss incurred by the airline in the financial year ended March 31, 2022, SriLankan Airlines said the losses included a foreign exchange loss of Rs.142.6 billion resulting from the revaluation of net foreign currency liabilities due to the sudden depreciation of the Sri Lankan rupee exchange rate in March 2022.
“The group, in fact, made an operating profit according to the audited financial statement and before the occurrence of exchange losses, amounting to Rs.1.7 billion in the year. This is a significant achievement considering the issues faced by airlines worldwide during that period owing to the pandemic,” a statement added.