Madhusha Thavapalaukuma SriLankan Airlines has recorded a loss of Rs. 40 billion in the financial year (FY) 2017/2018, the highest annual loss since Emirates’ departure from its management in 2008. Furthermore, this dubious record has been achieved in only the first nine months from April to December, and the full year loss could be much higher. For the nine months ended 31 December, 2018, the national carrier’s losses have grown to its highest level in 11 years, eclipsing the previous record of Rs. 32.4 billion recorded in 2014. The loss incurred in this period is a negative growth of 27.7% from its Rs. 28.9 billion losses incurred in FY 2017/2018. However, SriLankan Airlines CEO Vipula Gunatilleka, in a statement, expressed optimism for 2019, saying that it would be the year of consolidation for the airline and the management initiatives undertaken during the second half of 2018 were expected to show positive results. The statement issued by the airlines in this regard attributed the loss to the adverse impact of rising global fuel prices, rapid depreciation of local and regional currencies, and political instability. Despite the record loss, during this period, SriLankan Airlines’ net traffic revenue from core airline operations increased to Rs. 120 billion with a year-on-year growth of 8% while the overall seat capacity or Available Seat Kilometres (ASKs) was improved by 6.5%, the statement said. In the same period, SriLankan Airlines’ online direct sales channel www.srilankan.com recorded an overall penetration of 14% of the total network passenger revenue. The statement further said: “Increase in passenger revenue would have been much higher if not for the depreciation of key revenue-generating currencies which amounted to $ 9 million during the period under review.” Although a marginal reduction in the total number of passengers carried (0.3%) was reported for the nine-month period, overall seat factor (network-wide seat occupation) remained at 82% of the capacity deployed. The overall passenger yield which is measured as yield per Revenue Passenger Kilometre improved by nearly 1.6% from previous year. Improvement of market yield without deteriorating overall seat factor, considered as a challenging proposition in the airline industry, was achieved by SriLankan through the implementation of effective pricing initiatives which included timely imposition of fuel surcharges to minimise the impact of rising fuel cost. However, the release further says that the improvement in topline was overshadowed drastically by the increase in operating cost base owing to high fuel prices. At $ 902 million (Rs. 147 billion), the total operating cost recorded an increase of 15% against the previous year. Impact due to rise in aviation fuel prices was $ 66 million. Furthermore, an increase in aircraft maintenance cost and aircraft lease cost due to the addition of one A321 Neo Aircraft was reported during this period. SriLankan still waiting for restructuring report The SriLankan Airlines board is yet to receive the restructuring committee report which was handed over to President Maithripala Sirisena by the committee last week. President Sirisena, on 7 January (Monday), appointed a ten-member committee headed by State Minister Eran Wickramaratne to make recommendations for a restructuring strategy for loss-making SriLankan Airlines within two weeks. Thisuri Wanniarachchi, the convener of the committee, announced in a Facebook post that the report was handed over to the President.