SriLankan Airlines posted its first net profit in 25 years in the year ended March 31, 2004, thanks to higher passenger traffic and more frequent flights, the airline said on Wednesday.

State-controlled SriLankan made a profit of 600 million rupees (USD$5.8 million), compared with a 700 million rupee loss the previous year, Chief Financial Officer S.A. Chandrasekera told a news conference. "This is the first time airline operations have made a profit in 25 years," Chandrasekera said.

"Global oil prices are an issue for us but with traffic expected to rise by 25 percent next year, we are also expecting a revenue growth of about 25 percent," he added.

Group net profit, which includes catering, cargo and ground-staff operations as well as the airline itself, rose 76 percent to 5.63 billion rupees in the year from 3.20 billion rupees the previous year.

SriLankan, which is not listed on the stock exchange, is majority-owned by the state. Dubai airline Emirates holds a 43.4 percent stake.

(Reuters)