SriLankan Airlines turnaround hinges on fleet renewal, yield improvements and oneworld

SriLankan Airlines is aiming gradually to turn around its financial situation as it renews its fleet and leverages its new membership in oneworld.

The flag carrier, which has been highly unprofitable since a 10-year management contract with Emirates ended in 2008, expects another large loss in the current fiscal year. But SriLankan is confident it is now tracking in the right direction and should be able to break-even after the conclusion of its five-year business plan in 2016.

Fleet renewal is a key component of the carrier's efforts to reduce costs and improve efficiencies. The phase-out over the next two years of inefficient A340s is a particularly important step. Meanwhile, product improvements and membership in oneworld should support efforts to improve revenues and yields.