COLOMBO- SriLankan Airlines (UL) unveiled ambitious expansion plans to reach a 50-aircraft fleet within five years, aligning with Sri Lanka’s national tourism revenue target of US $10 billion by 2030.
This strategic growth initiative represents a significant transformation for the airline, which operated 27 aircraft before the COVID-19 pandemic and maintains 22 aircraft currently.
Photo: SriLankan AirlinesSriLankan Airlines Eyes 50 Aircraft Fleet
Chief Executive Officer Richard Nuttall confirmed the expansion strategy during the launch of the Sri Lanka Conference Ambassador Programme in Colombo. “Our goal is to double the capacity in five years,” Nuttall stated to Mirror Business.
The airline’s immediate growth trajectory includes enhancing its operational capacity by 25-30 percent before the end of 2025, compared to the previous year’s figures. This enhancement centers on acquiring three wide-bodied aircraft through wet lease arrangements, marking the first phase of the airline’s fleet expansion.
The expansion plans reflect a significant shift in government policy. The newly elected NPP government abandoned its predecessor’s intentions to privatize the debt-laden national carrier.
Instead, officials introduced a comprehensive five-year corporate revival strategy, demonstrating renewed confidence in the airline’s potential for recovery and growth.
Photo: Clément AlloingFinancial Challenges
SriLankan Airlines experienced significant financial challenges during the first quarter of 2024/2025, with revenue declining 12.7 percent year-over-year to Rs. 63.8 billion.
The airline’s profit before tax plummeted to Rs. 0.6 billion from Rs. 8 billion in the previous year, while net losses reached Rs. 12.9 billion, contrasting sharply with the Rs. 25.8 billion profit recorded in 1Q24.
The Treasury continues providing essential financial support through equity injections and loan guarantees to sustain the airline’s operations. This support proves crucial for maintaining the carrier’s service continuity despite financial headwinds.
Recent tourism growth shows promising signs for the airline’s financial recovery. SriLankan Airlines dominated air travel in December 2023, serving as the primary carrier for seven out of the top ten source markets.
CEO Richard Nuttall addressed service expansion during a panel discussion, emphasizing the airline’s commitment to meeting route-specific demand through capacity increases and upgrades.
Nuttall highlighted Sri Lanka’s historical lack of consistency in tourism initiatives, emphasizing the critical need for sustained governance in future tourism development programs.
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