SriLankan losses increase by Aug.

SriLankan Airlines’ losses grew to Rs. 12.6 billion in the first five months of the financial year 2025/26 ending in August, with the fall in cargo revenue and rise in cost of aircraft maintenance, Ministry of Finance said.

Accordingly, during the period from April to August 2025, the passenger revenue of SriLankan Airlines grew by 7% to Rs. 95.4 billion, supported by a strong recovery in passenger demand, with a load factor improvement to 82.6% from 76.4% and passenger volumes growth by 22%.

However, cargo revenue declined by Rs. 1.8 billion, and other income fell by Rs. 2.5 billion, resulting in limited overall revenue growth.

Also, operating expenses increased by 3% during the period from April to August 2025, mainly due to higher aircraft maintenance, stations, and traffic costs, partly offset by reduced fuel expenses. 

The company reported a loss of Rs. 4.1 billion from air transportation, which converted to a profit of Rs. 4.9 billion after accounting for airport services and other income, including ground handling and training. 

Finance Ministry said that the airline group recorded a group net loss of Rs. 12.6 billion by the end of August, compared to the loss of Rs. 4.2 billion in the same period of 2024, largely due to significant exchange losses of Rs. 8.5 billion and higher finance costs, despite the improved net income of Rs. 2.6 billion from SriLankan Catering.

Further, the report showed that as at the end of August 2025, total assets of the airline stood at Rs. 198.6 billion, an increase from Rs. 182 billion as at end March 2025, reflecting additions to right-of-use assets and receivables. 

The accumulated losses widened to Rs. 631.5 billion as at the end of August 2025, continuing to weaken the balance sheet. 

Source: The morning