Biman Bangladesh Airlines posts profit for third straight year, but it falls year-on-year

Biman Bangladesh Airlines has continued to post profit for the third straight year in fiscal 2016-17, but it has dropped year-on-year.

The flag carrier’s net profit in the last financial year was Tk 470 million.

The amount was Tk 2.35 billion in FY 2015-16 and Tk 3.24 billion in FY 2014-15.

The directors of the state-owned company cleared its financial statement for 2016-17 in their annual general meeting or AGM chaired by Chairman Muhammad Enamul Bari on Tuesday.

According to Biman spokesperson Shakil Meraj, the firm’s pre-tax profit was Tk 1.51 billion in FY 2016-17, which was Tk 240 million more than the previous fiscal year’s profit before tax.    

“The net profit dropped because of the payment of back taxes,” Shakil, a general manager, told bdnews24.com on Wednesday.

After government turned Biman into a public limited company in 2007 to pull it from a cycle of crippling losses, the firm posted profits in 2014-15 fiscal year after making losses of Tk 14.35 billion for another five years from 2009-10.

In past three financial years, the carrier clicked a total of Tk 6.06 billion net profits, it said in a media release.

According to the release, it paid Tk 3.81 billion to the government exchequer in 2016-17, Tk 770 million more than it did in the previous fiscal year.

Speaking to bdnews24.com, Shakil said Biman’s posting profit was ‘undoubtedly a remarkable achievement’ considering some factors.

These are, according to him, the price of jet fuel which is more in Bangladesh than it is in the international market, a ban on direct cargo flight from Bangladesh to the UK and intense competition between the airlines in Asian aviation market.

Biman said in the release that the six aircraft added to its fleet under a 2008 deal with Boeing on the purchase of 10 planes at $ 2.1 billion contributed much to the profit-making.

The process to buy three planes to add more flights to the domestic and regional routes from Canada’s Bombardier under a government-to-government system was under way. 

In 2016-17, Biman flew 2.351 million passengers or 1.4 percent more than it did in the previous fiscal year.

The amount of cargo it ferried in the 2016-17 fiscal year, however, declined 18 percent from previous year to 33,542 tonnes.

Biman’s income in carrying cargo dropped due to the ban UK slapped on direct air cargo flights from Bangladesh last year, Shakil said. 

According to the release, Biman provided ground handling services to 26 foreign airlines for their 48,502 flights and 16,473 flights of its own at Shahjalal International Airport in the last fiscal year.

The aircraft in the Biman fleet include four Boeing 777-300ER and two Boeing 737-800.

The leased planes by Biman include two Boeing 777-200ER, two Boeing 737-800, an Airbus A330, and for short trips, two Dash 8 Q400.

In next two years, Biman will buy four Boeing 787-8 Dreamliner. It is also planning to launch flights on Guangzhou route of China in March next year and to Colombo and Male the same year.

Shakil said they are also working to improve customer services and expected to continue making profit in the current fiscal year.