SriLankan Airlines Earnings Reverses Sharply in FY 2024/25 📉

• The national carrier reported a significant earnings reversal for the year ending 31 March 2025, swinging from a Rs. 7.9 Bn profit (previous year) to a Rs. 2.73 Bn loss, a decline of ~134.6% YoY. • Total Revenue fell by 10.8% to Rs. 303 Bn. The net loss was driven by substantial costs including Rs. 31.6 Bn in net finance charges and Rs. 2.2 Bn for unscheduled engine repairs. • Sector Performance: • Passenger revenue declined 15% YoY to Rs. 234.5 Bn, primarily due to capacity limitations and the impact of Rupee appreciation. • Cargo revenue showed resilience, growing by 2% YoY, supported by dynamic pricing strategies. • Other revenues, mainly from ground handling and ancillary services provided to other carriers, grew strongly by 16% to Rs. 27.1 Bn. • Shareholder funds remain deeply negative at Rs. 379.5 Bn. • The airline has $211.57 million in outstanding International Bonds (including $175m capital). A debt restructuring plan is being negotiated with Bondholders, and the Commercial High Court has issued an enjoining order against a potential winding-up application.