PT Garuda Indonesia fell into the red for a third straight quarter, although the losses narrowed as the company lifted ticket prices for domestic flights to offset weakness in the rupiah. The state-controlled carrier posted a net loss of US$7.8 million in July-September, according to calculations based on its nine-month earnings statement, with the result helping to push down its shares nearly five per cent.
The amount was, however, less than a loss of $47.8 million made in the previous quarter and a loss of $11.4 million reported for the same period a year ago. “In the latest quarter, Garuda’s performance has shown an improvement.
We booked a profit of $22.1 million for the month of September,” Garuda chief executive Emirsyah Satar said.
Garuda’s earnings this year have been hammered by weakness in the rupiah as much of its costs are paid for in U.S. dollars and as it reports its results in the US currency. Middle Eastern airlines – Emirates Airline, Etihad Airways and Qatar Airways – operating in the region have also intensified competition for many of the region’s carriers, including Garuda.