SriLankan Airlines reported an increase in losses, reaching Rs. 12.6 billion in the first five months of the 2025/26 financial year ending August.
The losses were driven by a fall in cargo revenue, rising aircraft maintenance costs, and significant exchange losses.
Passenger revenue grew 7% to Rs. 95.4 billion during the April–August period, supported by a strong recovery in demand, a 22% increase in passenger volumes, and a higher load factor of 82.6%, up from 76.4% the previous year.
However, cargo revenue fell by Rs. 1.8 billion, and other income declined by Rs. 2.5 billion, limiting overall revenue growth.
Operating expenses rose 3%, mainly due to higher maintenance, station, and traffic costs, partly offset by reduced fuel expenses. The airline posted a loss of Rs. 4.1 billion from air transportation, which turned into a Rs. 4.9 billion profit after accounting for airport services and other income, including ground handling and training.
Despite improved net income of Rs. 2.6 billion from SriLankan Catering, the airline group’s total net loss widened from Rs. 4.2 billion in the same period last year, largely due to Rs. 8.5 billion in exchange losses and higher finance costs.
Total assets stood at Rs. 198.6 billion, up from Rs. 182 billion in March 2025, while accumulated losses increased to Rs. 631.5 billion, further weakening the airline’s balance sheet.
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