SriLankan Airlines posts pre-tax loss of Rs.1.96bn in April-Oct.

SriLankan Airlines reported a pre-tax loss of Rs.1.96 billion for the seven months ended October 2024, reversing a profit of Rs.4.13 billion in the same period last year, the Finance Ministry said.

The ministry attributed the downturn to a 14.9 percent decline in net traffic revenue, which fell to Rs.152.32 billion, from Rs.178.82 billion a year earlier.

The government, which previously sought to restructure and privatise the state-owned airline, said it would explore alternative models to support the carrier without privatisation, citing its contribution to the national economy. To ease the financial pressure, the government provided a Rs.9.8 billion equity injection in 2024 and allocated Rs.20 billion in Budget 2025, to repay the legacy debt. Of this, Rs.10 billion will be set aside for loan capital repayment and Rs.10 billion for interest payments.

Presenting Budget 2025, President Anura Kumara Dissanayake said the airline would be responsible for achieving operating profitability, once its legacy debt obligations are settled by the government. The carrier is also seeking a new chief executive officer.

Meanwhile, a group of investors holding 50 percent of a sovereign-guaranteed bond issued by SriLankan Airlines, has engaged the law firm Akin Gump Strauss Hauer & Feld.

The US $ 175 million bond, issued in 2019, was a rollover of a previous five-year security.

Source: Daily Mirror