Duty-free sales boost SriLankan Airlines

Nicole Mezzasalma

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Core airline operation losses were countered by good performance in non-aeronautical segments

Air carrier SriLankan Airlines has reported R$4.8bn ($44.5m) in profits in the 2007/08 financial year despite heavy losses in its core airline operations, according to local news source Lanka Business Online. Duty-free sales reached R599m ($5.5m) in the period, which was marked by rising fuel costs and a decline in tourist arrivals to Sri Lanka.

SriLankan also benefited from capital gains from aircraft sales. Total revenue grew 17% to R80bn ($741.4m) in the 2007/08 financial year, with passenger revenues increasing from R53.8bn ($498.6m) in the previous year to R63.8bn ($591.3m) in the reported period.

The airline carried 3.2m passengers in the last financial year, an increase of less than 1% compared with the previous corresponding period.