SriLankan Airlines is currently at the verge of implementing the second phase of its restructuring plan, which would see the airline become a profitable and self-sufficient entity within a short period.
The restructuring initiatives would see the airline further fine-tune its route network and implement a range of cost optimisation initiatives. It intends to report its audited financial results for FY2017/18, which is required to undergo the review of Auditor General of Sri Lanka, before the end of September 2018, an airline release said.
SriLankan Airlines has achieved a record un-audited annual passenger revenue of Rs. 126.9 billion (US Dollars 830.7 million) for its just ended financial year of 2017/18, the highest ever in the Company’s 38-year history.
The revenue comes on the back of recent expansion of the airline to include services to several new destinations such as Gan Islands, Hyderabad and Melbourne and additional frequencies to popular cities in its network.
The airline’s cargo division recorded a spectacular performance achieving a revenue of Rs. 14.7 billion on its own.
Both passenger and cargo divisions exceeded their annual target, enabling the SriLankan Airlines Group, bolstered by an even stronger performance at its best performing business unit SriLankan Ground Services to comfortably exceed the overall annual revenue target.
The overall Group turnover exceeded one billion US Dollars, making SriLankan one of the handful of companies in Sri Lanka to reach this milestone. It also becomes the highest revenue generating company amongst all Sri Lankan businesses which publicly report their financials.
“This is the first instance of the airline achieving its annual revenue target since Emirates Airline left as the managing partner ten years ago. This comes at a turbulent time for the industry when most airlines are facing difficulty maintaining their yields due to intense competition,” SriLankan Airlines CEO, Captain Suren Ratwatte said.
“This achievement shows the capability and commitment of our workforce and demonstrates that the Company is well on track with its restructuring targets. With a new Chairman and Board of Directors in place, the airline will reach greater heights in the near future as we concentrate on curtailing our costs”.
The airline’s Chief Commercial Officer, Siva Ramachandran, added, “The next generation at commercial has come to the fore. The future of this Company is in the good hands of young people who are capable of taking it forward”.
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