Airport and Aviation Services Ltd reduces losses amidst economic challenges
State-run Airport and Aviation Services (Sri Lanka) Ltd entrusted with the task of Airport operations is running at a total loss of Rs. Rs. 755 million last year as the country gradually opens up for international traffic.
Coupled with the reduction of administrative cost and Net Finance cost, the bottom-line impact of the AASL shows an improvement in 2021 having a reduction of total loss to Rs. 755 million in 2021 from the loss of Rs. 3,733 million in previous year, the company balance sheet showed.
Operational revenue of the Airport and Aviation Services (Sri Lanka) Limited (AASL) has declined by 5 percent to Rs. 7.4 billion in 2021.
The revenue streams of AASL mainly comprise the aeronautical operations and non-aeronautical activities amounted to Rs. 2.3 billion and Rs. 5.1 billion, respectively in 2021.
However, the other operational income of AASL in 2021 has shown a trivial declined to Rs. 3.8 billion compared to Rs. 3.9 billion in 2020.
Airport and Aviation Services (Sri Lanka) Limited Airport operation is one of the key industries which facilitates for connecting people, countries, and cultures, providing access to global markets by generating trade and tourism, and forging ties between developed and developing countries.
Minister of Ports, Shipping and Aviation Nimal Siripala de Silva noted that the will initiate action to expand aviation sector by allowing new companies to operate domestic flights in the country.
He noted that the Airport Aviation Services Sri Lanka Limited has been entrusted with the task of selecting these companies after calling expressions of interest .
AASL will have to generate its own income by implementing projects aimed at developing the aviation sector he added.
The year 2020 and 2021 proved difficult for the aviation industry’s existence due to the global spread the COVID-19 disease.
Majority of aircraft operations around the world have been constrained or grounded, with very few flight movements recorded over the years.
According to the International Air Transport Association (IATA), net industry losses approximated to US $ 51.8 billion in 2021, demand was around 40 percent of 2019 levels in 2021, total passenger numbers were around 2.3 billion in 2021.