Garuda Eyes Return to Profitability After International Revenue Climbs in Q1

Garuda Eyes Return to Profitability After International Revenue Climbs in Q1


Jakarta — National flag carrier Garuda Indonesia’s international flights have contributed to more than half of the company’s revenue over the past two months, paving the way for the airline’s return to profitability. “Our income from international flights is about 52 percent of all revenue, so this development is good,” Garuda chief executive Pahala N. Mansury said on Sunday (28/05). Revenue from foreign flights should help Garuda plug fuel costs that dragged the airline into red in the quarter of this year. The airline booked US$98.5 million loss from January to March, compared to a US$1 million net income in the same period a year earlier. Pahala said he hopes Garuda will return to profitability in the second quarter of 2017. The airline currently flies to 21 international destinations and boasts strong passenger numbers, in large part due to recent expansions. So far, revenues accumulated from Garuda’s international flights has grown 13 percent year-on-year, compared to a mere 3 percent growth rate for the airline’s domestic flights. Last week, Garuda launched a nonstop service from Denpasar, Bali to Chengdu in China’s Sichuan province, strengthening Indonesia’s status as a traffic hub between China and Australia. “Indonesia, as a hub for significant number of Chinese passengers flying to Australia, can hopefully attract passengers from Australia as well,” Pahala said.

Sources: thejakartaglobe/Antaranews