SriLankan to break even over four years with new fleet

Aug 08, 2013 (LBO) – State-run carrier SriLankan airlines group is planning to break even in the year to March 2017, after running about 335 million US dollars of losses in the intervening years, an official said. Sri Lankan is buying 13 new aircraft from Airbus which will be more fuel efficient saving costs and will also upgrade the product allowing better prices and yield, chief executive Kapila Chandrasena said.

The first of six A330-600s will arrive in October 2014 giving 6-8 percent in fuel savings. From 2017, the first of A350-900s will arrive giving fuel savings of 12 to 15 percent, he said.

SriLankan’s short-haul fleet of A320s was already modernized.

By 2018 March, it will have a fleet of 22 air crafts almost unchanged from the current 21.

Financial Forecast

In the year to March 2013, the SriLankan made losses of 190 million US dollars he said.

In the year to March 2014 it is expecting losses of 170 million US dollars, 131 million dollars in the following year and 34 million US dollars the year after totaling 335 million US dollars.

In the year to March 2017 the group is expecting profits of 36 million US dollars and 94 million dollars the following year.