Sri Lankan Airlines cuts losses

Sept 28, 2011 (LBO) – State-run SriLankan Airlines said it had lost 202 million rupees in the year to March 2011, down from 6.03 billion rupees a year earlier, helped by 3.6 billion rupees in one-off non-operating incomes.

“SriLankan will focus on each of its diverse areas of business, with particular emphasis on transforming our air transport operations to the point of profitability once again,” chief executive Kapila Chandrasena said in a statement.

“The Airline’s ancillary businesses will complement our air transport operations and provide additional revenue streams to strengthen revenue and profitability.”

The state run airline will get 500 million dollars in public money over the next five years to boost its capital.

SriLankan had carried 2.86 million passengers in the year to March 2011, up from 2.55 million a year earlier, and 86,000 tonnes of cargo up from 72,000 tonnes.

Sri Lanka has seen record tourism arrivals following the end of a three decade war and the airline expanded its fleet and started flying to new destinations.

Passenger load factor, or the share of filled seats to the total available, fell slightly to 76.79 percent from 77.93 percent a year earlier. Its cargo factor