SriLankan Airlines sees no short term recovery in yields, revenue declines

SriLankan Airlines stated (27-Jun-2016) it is restructuring and reviewing its network as part of efforts to improve its financial position, stating: "The Government of Sri Lanka has made it clear that it will no longer fund continuing losses...the route network is being continuously evaluated in the context of changing market dynamics in order to maximize on sustainable routes which bring in more contribution towards the bottom line." The carrier added: " While the drop in fuel prices has contributed to the airline's improved performance, this benefit has been significantly eroded with the airline's revenues declining for the F/Y ending 2015/16 compared to the previous year. Addition of capacity to the Colombo market particularly by Middle Eastern carriers, accompanied by a drop in airfares in European markets has seen the contribution of the European network drop in comparison to the other routes. This has been further exacerbated by the depreciation of the Euro against the Dollar...there were no short term signs of recovery in yields." [more - original PR]