Sri Lanka’s annual tourism revenue is expected to reach US$10 billion by the end of the year, and SriLankan Airlines plans to double its fleet to 50 aircraft in five years.
Before the Covid-19 pandemic, the national carrier had 27 aircraft in its fleet and currently has 22 aircraft.
“Our target is to double the fleet in five years,” SriLankan Airlines CEO Richard Nuttall told Mirror Business during the launch of the Sri Lanka Conference and Events Programme (SLCAP) this week.
By the end of 2025, SriLankan Airlines plans to add three wide-body aircraft, up from its previous high of 25-30 by the end of last year. Nuttall noted that arrangements are in place to purchase three wide-body aircraft on wet lease.
The NPP government, which came to power late last year, decided to scrap the government’s plans to sell the debt-ridden national carrier and instead, announced a five-year corporate plan to revive the airline.
The national carrier suffered a financial setback in the first three months of the 2024/2025 financial year (FY). Its revenue fell by 12.7 percent year-on-year to Rs 63.8 billion in Q1FY25. Although profit before tax was Rs 0.6 billion, it was significantly lower than the Rs 8 billion reported in the corresponding period of the previous year. The airline reported a net profit of Rs 12.9 billion in Q1FY25, significantly lower than the Rs 25.8 billion reported in Q1FY24.
SriLankan Airlines continues to receive support measures, including treasury stock injections and loan guarantees, to keep it afloat.
However, seasonal tourist arrivals are expected to improve the financial performance of the national carrier. Out of the top ten source markets, SriLankan Airlines was the main carrier for seven markets as of December last year.
Addressing the panel discussion at the event, it was stated that as long as there is a demand, the airline can make the necessary improvements and, if necessary, add flights to accommodate demand on specific routes.
He pointed out that Sri Lanka has not been compliant with the past tourism initiative. He stressed that the country must maintain compliance by focusing on governance of the initiative, going forward.
