Sri Lanka’s national carrier records an increase in passenger revenue in a year up to March 2018
Sri Lanka’s national carrier, SriLankan Airlines has reportedly stated that passenger revenues have risen 20 percent from a year earlier to US$ 830.7 million (SLR 126.9 billion) in the year to March 2018. With the latest earnings, the airline seems to be recovering from a drop last year.
According to reports, in the year to March 2017, revenues had dropped 5.2 percent to US$ 687.6 million from US$ 726 million a year earlier, with a partial closure of Katunayake International Airport for runway repairs from January to April.
Cargo revenues have also reportedly recorded a growth of 18.0 percent to US$ 96.2 million (SLR 14.7 billion), which is an 18 percent from a year earlier.
“This comes at a turbulent time for the industry when most airlines are facing difficulty maintaining their yields due to intense competition,” Chief Executive of SriLankan Airlines, Suren Ratwatte has said in the statement.
“SriLankan has just completed a year of significant expansion with minimal erosion on yields and ended the year comfortably exceeding the revenue target.”
SriLankan has also said its new routes to Melbourne, Australia, Gan Islands, Maldives and Hyderabad in India had helped boost revenues.
According to reports, SriLankan has revenues from ground handling passengers and cargo, which were not given in the statement.
A subsidiary, SriLankan Catering has also recorded revenues from sales to third party airlines.
OSL take:
Sri Lanka’s national carrier, SriLankan Airlines is currently looking for a management partnership to form a joint venture with a foreign company, to develop and promote the airline. The airline is also facing a restructuring process. The increase in revenue recorded by SriLankan Airlines is an encouraging sign for foreign businesses to form a joint venture with the airline.
| Article Code : | VBS/AT/23042018/Z_1 |