In the year to March 2011 the firm had lost 940 million rupees on revenues of 3.14 billion rupees, down from 1.2 billion a year earlier. Costs were cut by changing 'wet leases' of its aircraft to 'dry leases', a report by the finance ministry said.
The turnaround has come in the next nine months with just an 18 percent increase in passengers carried to 266,292 and cargo rising to 1,290 tonnes from 959 tonnes.
The performance is even more remarkable since the airline only operates only two aircraft to seven destinations. The carrier is expected to acquire a third aircraft in the first quarter of 2012, the report said.
Its sister carrier, SriLankan which operates over 20 aircraft had meanwhile lost 15.56 billion rupees before interest in the 9 months to December. Interest charges were 741 million rupees.Mihin Lanka's long term liabilities fell to 414 million rupees by December from 2,802 million in March but its long term liabilities rose to 4.39 billion rupees from 2.23 billion rupees.
It had negative net assets of 3.2 billion rupees down from 3.8 billion in March.