SriLankan Airlines Group doubles profit  [Thursday, June 29, 2006 - 8.50 GMT] 

SriLankan Airlines Group nearly doubled its profit in the financial year 2005/06 on the strength of new market strategies and greater emphasis on controlling costs, in the face of volatile global fuel prices and increased competition.

The Group reported a Nett Profit after Tax of Rs. 2,041.18 million, an increase of 48.33% from the previous year’s Rs. 1,376.07 million.

“This was yet another challenging year for the Group. While we are still recovering from the devastating effects of the Tsunami, we faced new challenges such as the drastic rise of jet fuel prices and the deteriorating security situation in the country which significantly affected our business,” said D.H.S. Jayawardena, Chairman of SriLankan Airlines Group.

The Group consists of SriLankan Airlines Limited and its fully owned subsidiary SriLankan Catering (Private) Limited. The Government of Sri Lanka owns 51.05% of the Group’s shareholding, with Emirates having 43.63%, and others including employees own 5.32%.

“Achieving these results after the devastating effects of the Tsunami, deteriorated security situation in the country and skyrocketing global fuel prices is a significant achievement, clearly signifying the commitment and the capabilities of our staff,” said Tim Clark, the Group’s Managing Director.

The Group’s won several more international awards for the year including the Travel Trade Gazette Award for Best Airline in South Asia; the Skytrax Award for Best Cabin Staff in Central Asia; the Silver in Corporate Social Responsibility at the Community Leadership Awards; the Galileo Indian Express Award for Best Eastbound International Airline in India; the Silver Award at the Asia Travel & Tourism Creative Awards; eleven medals for SriLankan Catering at Culinary Art; and three Freddie Awards for Skywards (the frequent flyer programme of Skywards and Emirates) including Programme of the Year.

“I am pleased to say that our staff once again proved their mettle, and carried the airline through another difficult year. The focus on better control of costs did not in any way compromise our commitment to providing the finest service,” said Peter Hill, CEO of SriLankan Airlines.
 
SriLankan has also focused on the vast marketing possibilities of the Internet through its Internet Booking Engine, and is well on the way to converting its entire operation to paperless ‘E-ticketing’, providing significant cost savings.

SriLankan’s strategic activities focused on enhancing the image of the airline and the country, positioning Colombo as the gateway to India. SriLankan played a prominent role and invested Rs. 400 million in the country’s biggest promotional campaign – Rediscover Sri Lanka – in partnership with Sri Lanka Tourism and the tourism industry.

 

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Last Updated Date: June 29, 2006 -8.50 GMT