Net profit of Biman Bangladesh Airlines declined by 80 per cent during the fiscal year 2016-17 compared with that of the FY 16 because of weakening of local currency against the dollar, continuous ban on cargo operation to UK and tough competition among the Asian carriers.
Biman made a net profit of Tk 47 crore in FY 17 against that of Tk 235 crore in the fiscal year 2015-16, according to a press release of the state owned carrier on Wednesday.
The profit of Biman fell for third consecutive year as the entity made a profit of Tk 324 crore in FY15.
Officials of the airline said that high price of jet fuel in Bangladesh, weakening of exchange rate of the taka, ongoing ban of cargo operation to UK and ‘unhealthy’ competition among the Asian airliners had resulted in Biman’s profit plunge.
BIMAN general manager (PR) Shakil Miraj told New Age that because of weakening of the taka against the dollar had resulted in Tk 132 crore in revenue loss for Biman while UK’s cargo operation ban caused a revenue loss of Tk 81 crore during FY17.
He said that Biman also paid a significant amount of deferred tax in the year.
The board of directors of Biman approved the entity’s financial statement at its 10th annual general meeting with its chairman Muhammad Enamul Bari in the chair.
Biman release said that it contributed Tk 381 crore in taxes to the national exchequer in FY17 which was Tk 304 crore in the previous year.
During the FY16, Biman ferried a total of 23.51 passengers against 23.18 lakh in FY16.
Besides, Biman shipped 33, 542 tonnes of cargo in FY17 whereas it carried 40,931 tonnes of cargo in FY16.
Shipment of cargo witnessed an 18 per cent fall in FY17 due mainly to the ban on direct cargo freight to London.
Biman is now running its operation with 10 wide-body and 2 narrow-body aircraft to 15 international and 7 domestic destinations.
Four modern Boeing 787-8 dream-lines are expected to join the Biman’s fleet in 2018 and 2019.
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