SRI LANKAN AIRLINES AND MIHIN LANKA REDUCES LOSSES

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By TESTCustomwebLP TESTCustomwebLP April 21, 2011 13:44

SRI LANKAN AIRLINES AND MIHIN LANKA REDUCES LOSSES

Sri Lankan Airlines managed to sharply reduce losses in 2010 as revenue rose with a recovery in air travel and the end of a war increased tourist arrivals.

The national carrier made an operating loss of 6,272 million rupees in 2010, down 49% from the previous year, according to the central bank. Revenue increased by 26.3% to 67,835 million rupees while the airline’s operating cost increased by 12.4% to 74,107 million rupees.

“The increase in revenue and the implementation of stringent cost control measures contributed to the reduction of the operating loss of Sri Lankan Airlines,” the central bank said in its annual report.

It said there was a “notable increase” in air passenger and freight transportation in 2010 owing to the gradual recovery in the global economy and post-conflict improvement in the tourism sector.  The number of passengers carried by Sri Lankan Airlines increased by 24.5% in 2010 from the previous year.

The central bank also said the loss-making state-owned budget carrier Mihin Lanka had also improved its performance last year.  Mihin Lanka made an operating profit of 416 million rupees in 2010 compared to the operating loss of 666 million rupees incurred in 2009.  Sri Lanka’s 30-year civil war ended in May 2009, resulting in a tourism boom with arrivals up by 46% to a record 654,476 in 2010.  Arrivals rose 43.5% in March 2011 (year on year) to 75,130, with steep increases seen from South Asia and several European generating markets.

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By TESTCustomwebLP TESTCustomwebLP April 21, 2011 13:44
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