SriLankan Airlines after returning to profit for the first time in 15 years is considering the possibility of being acquired by Gulf-based airlines after its anticipated privatization, reports The National. Despite the operating profit, the airline still reported a net loss, primarily due to the devaluation of Sri Lanka's currency in 2022.
SriLankan Airlines achieved a significant milestone by recording an operating profit of $5.1 million in FY22, marking the first time in 15 years that the airline has turned an operating profit. This improvement is in sharp contrast to the previous year's loss of $25 million.
“This is a significant achievement considering the issues faced by airlines worldwide during that period owing to the Pandemic. SriLankan Airlines, moreover, presented its unaudited dollar financial statements for the latest financial year that ended in March 2023 at the recent COPE meeting in the Parliament. During the recently completed fiscal year, the airline generated a passenger and cargo revenue of USD994 million and an operating profit of $53 million,” the airline said in a statement.
On this backdrop the airline is eyeing the possibility of take-over by a Gulf-based airline. Although there is no official confirmation on the news yet, SriLankan chief executive, Richard Nuttall hinted that the airline can now be considered as a potential asset for acquisition for Gulf carriers.
According to Nuttall, Gulf carriers – Emirates, Qatar Airways, Etihad Airways, Riyadh Air, or Saudia – could benefit from the airline's easy access to India. The airline currently serves 13 Indian destinations, according to its official website.
Commenting on why the airline could be a valuable fit for a takeover, Nuttall added: "If you work with us then you start being relevant to the Indian market in all directions. So, I think that's the big interest for the Gulf carriers."
The airline currently has a fleet consisting of 23 aircraft. SriLankan Airlines' fleet comprises 11 Airbus A330s, seven Airbus A320s, and five Airbus A321 aircraft.
Emirates previously owned 40% of SriLankan Airlines until the Sri Lankan government bought all the airline's shares in 2008.