June 25, 2012 (LBO) – Sri Lanka’s state-run budget carrier Mihin Lanka, has made profits of 2.0 billion rupees before tax, on revenues of 4,576 million rupees in the nine months to December 2011 according to a finance ministry report. 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.
The firm had seen negligible finance charges of around 51 million rupees in the period. The profits before interest indicate remarkable gross margins of around 40 percent.
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 a