The last flights between Frankfurt and Colombo (UL 553/554) will be operated on October 30, while UL 563/564 of November 6, 2016 will conclude the operations between Paris and Colombo, the national carrier of Sri Lanka said in a statement.
“The Government of Sri Lanka has made it clear that it will no longer fund continuing losses,” it said.
The airline’s route network is being continuously evaluated in the context of changing market dynamics in order to maximize earnings on sustainable routes which bring in more contribution towards the bottom line, it said.
“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,” the statement said.
“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.”
SriLankan Airlines said the situation has been further exacerbated by the depreciation of the Euro against the Dollar and that there were no short term signs of recovery in yields.
SriLankan said it operates daily flights to both Doha and Abu Dhabi and has a strong code share relationship with Etihad and Qatar through which it will continue to provide onward connectivity to the European destinations it has been serving via Paris and Frankfurt.
“London will remain the Airline’s gateway to Europe, where the airline has deployed its A330-300 fleet for daily non-stop operations, providing a greater comfort and an enhanced flying experience to its passengers,” it said.
The Indian Sub-continent, the Middle East and the Far East will remain SriLankan’s focal markets, where the airline will continue to explore its potential for expansion.