SriLankan Airlines reported record earnings growth but warned high fuel prices would reduce profits this year. SriLankan Airlines reported record earnings growth but warned high fuel prices would reduce profits this year. The national carrier that uses the Colombo airport as a hub saw post tax profits climb to Rs. 4.3 billion with an ROE of 88 percent.
SriLankan says new additions to its fleet will help add daily flights to major destinations making the airline a competitive network carrier.
The airline posted a record profit of Rs. 4.5 billion while the consolidated group profit, including the catering operations came in at Rs. 5.6 billion an ROE of nearly 100 percent.
The airline higher fuel prices will however effect profitably this year.
“Last year the price of fuel was 90 (US) cts a gallon, that has now gone up to 130 cts a gallon- within less than six months and that has impacted severely on our bottom line-about 20- to 21 percent,” says Peter Hill CEO, SriLankan.
“In a group perspective we will have a profitable year,” he says talking about next year.
“But it will be difficult to keep th