According to figures in the Mid-Year Fiscal Position Report 2025 of SriLankan Airlines (UL) (that has been quoted in Daily Mirror Online) has reported an operating loss of Sri Lankan Rupees (LKR)Rs 5.2 billion (approximately $ 17 million) from its core air-transportation business in the first quarter of the 2025/26 financial year.
This loss contrasts with a Rs 3.5 billion (approximately $ 11.50 million) operating loss in the same period last year, even as the airline experienced a robust rebound in passenger traffic and improved load factors.
SriLankan Airlines Passenger Surge vs Revenue Mix
SriLankan Airlines achieved passenger revenue of Rs 51.7 billion (approximately $ 169.7 million) in the quarter, up by Rs 1.5 billion (approximately $ 4.9 million) year-on-year, supported by 23 % growth in traffic and the carriage of over one million passengers. following table puts the othe rnumbers into perspective:
| Category | FY2025 / Q1 FY2025 | FY2024 / Q1 FY2024 | Change / Notes |
|---|---|---|---|
| Passenger Load Factor | 82.3% | 74.8% | Improved by 7.5 percentage points |
| Net Traffic Revenue | Rs. 62.7 billion (approximately $205 million) | Rs. 63.8 billion | Slight decline due to weaker cargo and ancillary income |
| Cargo Revenue | Rs. 7.1 billion (approximately $23.3 million) | NG | Fell by 13% year-on-year |
| Other Revenue | Rs. 3.8 billion (approximately $12.4 million) | NG | Dropped by 28%, indicating weak non-passenger performance |
| Total Operating Expenses | Rs. 67.8 billion (approximately $222 million) | NG | Increased mainly from aircraft maintenance costs, despite savings in fuel and lease expenses |
| Operating Profit (Group, before finance & FX costs) | Rs. 1.1 billion (approximately $3.6 million) | NG | Supported by contributions from subsidiaries such as SriLankan Catering |
| Finance Costs | Rs. 6.4 billion (approximately $21 million) | NG | Reduced the group’s modest operating profit to an overall loss |
| Exchange Losses | Rs. 4.9 billion (approximately $16 million) | NG | Continued currency pressures eroded profitability |
| Net Loss (Group Level) | Rs. 10.7 billion (approximately $35 million) | Rs. 12.9 billion | Narrowed by Rs. 2.2 billion year-on-year |
| Accrued Losses (as of June 2025) | Rs. 628.3 billion (approximately $2.06 billion) | NG | Reflects deep structural deficits accumulated over years |
| Shareholder Equity | -Rs. 415.2 billion (approximately $1.36 billion) | NG | Remains in negative territory, underscoring financial distress |
| Total Liabilities | Rs. 606.7 billion (approximately $2 billion) | NG | High debt burden continues to weigh on balance sheet |
| Total Assets | Rs. 191.5 billion (approximately $627 million) | NG | Insufficient to offset mounting obligations |
Thus, even though passenger operations improved, the deterioration in ancillary revenue and rising maintenance cost pressures resulted in a wider operating loss for the carrier’s core business.
During this time, the airlines had 272 pilots, 940 cabin crew, 291 managers, and 615 Aviation Engineers and Technicians. The report attributed the decline primarily to a shortage of serviceable aircraft, compounded by delays in returning jets from maintenance and persistent engineering-related disruptions across the year, which ultimately curtailed global revenue and capacity.
As of March 31, 2025, the government owns 99.77% of the shares of SriLankan Airlines Limited, while the Employees Provident Fund owns 0.09%.
| Category | FY 2023/24 | FY 2024/25 | Change / Remarks |
|---|---|---|---|
| Financial Performance (Airline) | Profit of Rs. 3.87 billion (≈ USD 12.77 million) | Loss of Rs. 7.59 billion (≈ USD 25.05 million) | Swing to loss due to maintenance delays and reduced fleet availability |
| Financial Performance (Group) | Profit of Rs. 7.9 billion (≈ USD 26.07 million) | Loss of Rs. 2.7 billion (≈ USD 8.91 million) | Group performance weakened amid operational challenges |
| Revenue | Rs. 339,591.65 million (≈ USD 1.12 billion) | Rs. 303,093.89 million (≈ USD 1.00 billion) | Decline of Rs. 36,498 million (≈ USD 120.44 million) — about 10.7% drop |
| Passenger Revenue | Rs. 276.2 billion (≈ USD 911.46 million) | Rs. 234.5 billion (≈ USD 773.85 million) | Dropped by 15% year-on-year |
| Passengers Carried | ≈ 3.64 million | 3.5 million | 4% decrease in passenger numbers |
| Available Seat Kilometers (ASK) | Baseline year | Contracted by 5% | Reduced operational capacity in 2024/25 |
| Primary Causes of Loss | Strong aircraft availability; recovery year | Limited aircraft, maintenance delays, and engineering disruptions | Fleet issues and reduced global capacity |
| Employee Count | Not specified | 6,071 employees (67% male, 33% female) | Updated workforce data for 2024/25 |
| Employee Cost | Rs. 32,261 million (≈ USD 106.46 million) (estimated) | Rs. 32,799 million (≈ USD 108.24 million) | Increase of Rs. 538 million (≈ USD 1.78 million) |
| Staff Expenses | Rs. 9,812 million (≈ USD 32.38 million) (approx.) | Rs. 9,469 million (≈ USD 31.25 million) | Decrease in staff-related costs |
| Ownership | Government held majority stake | Government 99.77%, EPF 0.09%, Others 0.14% | No major change in shareholding structure |
| Audit Assessment | No significant concern reported | Auditor General noted going concern risk | Deterioration in financial stability |
Data: TheColomboPost
According to Lankan Papers, Sri Lanka has yet to establish a firm roadmap for restructuring SriLankan Airlines. However, SriLankan Airlines Chairman Sarath Ganegoda said the government remains open to private-sector partnerships aimed at improving the airline’s profitability.
Ganegoda indicated that the government could introduce measures for the airline in the next annual budget, although he could not comment on its plans on the government’s behalf. He also noted that the previous administration had attempted to restructure the national carrier through private-sector involvement, but the effort failed to attract a private investor and was subsequently abandoned.
There are glimmers of positivity for SriLankan Airline
Despite the losses incurred by the airline, there are quite a few positives as well. These include
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From July 2025, introduction of double daily services to Singapore, Kuala Lumpur, and Bangkok.
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Added four extra flights to Dubai
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Induction of a leased Airbus A330-200 in June marked the airline’s first wide-body addition in seven years.
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Two aircraft previously grounded due to engine unavailability have returned to service, with a third expected to join early next year.
- Yaana,’ SriLankan’s n AI-driven chatbot, enables smooth, personalized digital interactions and intelligent self-service solutions at airports.
According ot TrvelTalk Asia, these initiatives helped the airline record “a 10% increase in passenger revenue, 22% higher passenger numbers and a 10% growth in capacity“, during the first five months of the fiscal year 2025/26.
