SriLankan Airlines posts net loss of SLR22.5bn in FY2013

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SriLankan Airlines widened its net loss to Sri Lanka rupees (SLR) 22.5 billion ($172 million) in its financial year 2013 from SLR17.2 billion a year earlier.

The airline’s total revenue for the period ended 31 March 2013 rose by 28% to SLR121 billion from SLR94.6 billion, it said in its annual report.

Its operating expenditure, however, increased to SLR144 billion on high fuel prices, enhancements to its support services and also a cabin upgrade programme. It also experienced weaker yields as a result of competition from other carriers and the recession in Europe.

SriLankan’s fleet size during the financial year remained flat at 22 aircraft, as it received its eighth Airbus A320 and withdrew a DHC-6 Twin Otter aircraft. It plans to add two leased A321s in 2014, and begin replacing six Airbus A340-300s with A330-300s, as their leases start expiring from the third quarter of 2014. Subsequently, the A330-200s will be replaced with Airbus A350-900s.

The airline adds that it plans to maximise passenger revenue by capitalising on its nonstop services to Sri Lanka, raising premium yields with an upgraded business class and enhancing its revenue management practices and systems. It also intends to attract more passengers through internet bookings.

SriLankan's membership in the Oneworld alliance will allow it to raise its market share through co-ordinating schedules with alliance partners, it adds.