The annual report of the Civil Aviation Ministry for the year 2011 has shown that losses of Mihin Lanka have amounted to US$ 18.6 million.
The annual report was presented in the parliament on Friday.
The report states that Mihin Lanka’s performance was affected due to the steep increase in fuel prices by 30 percent.
However, the report notes that Mihin Lanka could not increase air fares to set off the increase in fuel costs as it had to maintain its competitiveness with several other low cost carriers operating to the same destinations.
“In these circumstances, Mihin Lanka has endeavoured to continue provide affordable air travel by reduce costs in all other areas of operations with a view to minimizing its losses,” the report states
SLM