SriLankan posts modest profit despite tsunami and fuel prices

SriLankan Airlines Group posted a nett profit after Tax of Rs. 1,376.07 million for the financial year 2004/05, despite multiple crises such as the tsunami and skyrocketing fuel prices, which sharply affected its revenue and expenditure.

"The performance of the SriLankan Airlines Group during the financial year 2004/05 cannot be measured or quantified in rupees and cents," Chairman, SriLankan Airlines J.M.S. Brito said. The Company's fuel cost increased by 71.49% on the back of a 41.36% increase in average fuel prices, and a 15.96% increase in consumption required by the Airline's expansion.

In real terms, an increase of one US cent per gallon translates into an added expenditure of US 1 million per annum for SriLankan. "In spite of all this we have achieved a modest profit, which bears testimony once again to the remarkable resolve and dedication of the management and staff of the Company," Managing Director Tim Clark said.

The Airline continued to win global recognition for excellence. Its awards for the year included Airline Turnaround of the Year 2004 from the Centre for Asia Pacific Aviation; Best Airline in Central Asia from Skytrax for the fourth consecutive year; Best Airline in Central Asia from TTG Asia for the second consecutive time.

The SriLankan Airlines Group's nett profit after tax was down 75.58% from the previous years Rs. 5,635.51 million. The Group's operating profit before finance cost and tax was Rs. 1,742.08 million, a decline of 70.47% as against the previous year.

The Airline's operating profit before finance cost and taxation was Rs. 324.20 million, 93.22% below the previous financial year, and ended up with a marginal nett profit after tax of Rs. 7.66 million, 99.83% below the previous financial year.

The Group's operating revenue was Rs. 54,720.54 million, up 18.46% from the previous year, and the Airline's operating revenue was Rs. 53,808.85 million, up 18.53%.

"SriLankan Airlines has made significant progress during the last financial year by expanding its network into India and South East Asia, increasing its overall capacity by 15% and its revenue by 18%," Clark said.