SriLankan Airlines plans to double its fleet to 50 aircraft within five years as Sri Lanka targets US $10 billion in annual tourism revenue by the end of the decade.
The National Carrier was in possession of 27 aircrafts in prior to the Covid-19 pandemic and currently has 22 aircrafts in its fleet.
“Our goal is to double the capacity in five years,” SriLankan Airlines Chief Executive Officer Richard Nuttall told Mirror Business speaking along the sidelines of the launch of Sri Lanka Conference Ambassador Programme (SLCAP) in Colombo this week.
By end 2025, SriLankan Airlines is planning to boost its capacity by 25-30 percent compared to end of last year by adding three wide-bodied aircrafts. Nuttall noted that arrangements are in place to procure three wide-bodied aircrafts on wet lease.
The NPP government which came in to power late last year decided do away with previous government’s plans to sell the debt-ridden national carrier, instead, the Government has announced a five-year corporate plan to revive the airline.
The national carrier’s financial took a beat in the first three months of the 2024/2025 financial year (FY). Its revenue dipped 12.7 percent Year-on-Year to Rs. 63.8 billion in 1Q25. Though, it was able to post a profit before tax of Rs. 0.6 billion, it was drastically lower than the Rs.8 billion recorded in the corresponding period the previous year. The airline reported a net loss of Rs. 12.9 billion in 1Q25, compared to Rs. 25.8 billion net profit recorded in 1Q24.
The Treasury continued to provide equity injections and other supportive measures including loan guarantees to maintain the operations of SriLankan Airlines.
However, recent spike in tourist arrivals is expected to have improved the financials of the National Carrier. Out of the top ten source markets, SriLankan Airlines was the main airline for seven markets as of December last year.
Nuttall, while addressing the panel discussion at the event, noted that as long as there is demand, the airline could make necessary upgrades and if required, it would keep adding flights to meet the demand on specific routes.
He went on to point out that Sri Lanka lacked consistency in past tourism initiatives. Therefore, moving forward, he stressed that the country must maintain consistency focusing on governance aspect of such initiatives.
By Nishel Fernando | Daily Mirror
