SriLankan Airlines 2024/25 Results Show LKR 2.7 Bn Loss

SriLankan Airlines recorded an improvement in its underlying operating performance during the 2024/25 financial year, although engine shortages, high finance costs and a severely weakened balance sheet continued to weigh on the national carrier.

According to the airline’s annual report, the SriLankan Airlines Group recorded an operating profit of LKR 28.42 billion before foreign exchange gains, compared with LKR 28.15 billion a year earlier. Excluding foreign exchange gains and unscheduled engine repair costs, the operational loss narrowed to LKR 6.66 billion from LKR 18.79 billion in 2023/24.

However, Group revenue declined to LKR 303.09 billion from LKR 339.59 billion, with passenger revenue falling 15% to LKR 234.5 billion. The decline was attributed mainly to capacity constraints, lower global yields and the stronger Sri Lankan Rupee.

A major operational challenge was the shortage of Pratt & Whitney engines for the Airbus A320neo and A321neo fleet. Unscheduled maintenance and spare-parts shortages contributed to 487 flight cancellations during the year. The airline spent approximately LKR 2.2 billion on unscheduled engine repairs and related lease costs, while damp-leases and wet-leases were used to maintain operations.

At the end of the financial year, the airline operated 22 aircraft, comprising 13 narrow-body and nine wide-body aircraft. Passenger capacity fell 5% during the year, while the passenger load factor stood at 78.64%.

Revenue from other operations provided some support. Ground handling and air terminal services revenue increased 17% to LKR 24.9 billion, while SriLankan Catering revenue rose 13% to LKR 7.3 billion. The annual report said both businesses remained profitable.

Despite improvements in underlying operations, the Group recorded a net loss of LKR 2.74 billion for the year, compared with a net profit of LKR 7.93 billion in 2023/24. Net finance costs reached LKR 31.6 billion.

The airline’s balance sheet remained under significant pressure. As at March 31, 2025, Group shareholders’ funds stood at a negative LKR 379.52 billion, while company equity was negative LKR 403.17 billion.

The Government of Sri Lanka continued financial restructuring efforts to address the carrier’s debt burden. State-owned bank loans are being restructured, while negotiations and restructuring measures relating to the airline’s USD 175 million Sovereign-Guaranteed International Bond have also progressed.

SriLankan Airlines has also introduced a five-year strategic plan covering fleet modernisation, revenue growth, customer experience, operational efficiency, digital transformation and sustainability.

The 2024/25 results therefore reflect a mixed financial picture, with improvements in underlying operational performance offset by high financing costs, fleet-related disruptions and the airline’s substantial negative equity position.