Garuda back in the black with US$29.3m net profit

Garuda Indonesia has returned to profit with a US$29.3 million net profit in the first half of 2015, representing a 114.5 per cent jump over the same period last year, when it recorded a lost of US$201.3 million.

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PT Garuda Indonesia (Persero) Tbk. has booked a US$29.3 million net profit in the first half of 2015, representing a 114.5 per cent jump over the same period last year, which was a negative US$201.3 million. Garuda said the performance growth – amidst the economic down turn – has been achieved through various initiatives by the carrier as part of its ‘Quick Wins’ programme, as well as a continuous efficiency strategy.

Garuda Indonesia also succeeded in increasing its operating revenue to US$1.84 billion, an increase 4.7 per cent compared to previous year; while operating expenses decreased by 11.6 per cent to USD 1.76 billion. The increased net income and decreased operating expenses marks the positive improvement of the management, supported by the strong performance of the company since Q1/2015.

Garuda transported 176,123 tonnes of cargo, down from 193,508 tonnes, while passenger carriage increased 19.5 per cent to 13.3 million passengers over the period.

Through June 2015, Garuda Indonesia operated a total of 180 aircraft (Garuda Indonesia and Citilink) consisting of B777-300ER (seven), A330-200/300 (22), B747-400 (two), A320 (35), B737-500/800NG (89), CRJ1000 NextGen (15), and ATR 72-600 (10) with an average fleet age of 4.8 years. By the end of 2015, Garuda Indonesia will operate a total of 190 aircraft with an average fleet age of 4.3 years.

In anticipation of a weakening Indonesian Rupiah against the US Dollar, in the first quarter of 2015 Garuda Indonesia signed a ‘Cross Currency Swap’ agreement with various banks in order to protect transactions to IDR 2 trillion. The Cross Currency Swap is an effort to avoid or limit the dramatic increase of the operational expenses as a consequence of the weakening of the Rupiah to USD, as most of the operational expenses paid are in USD, such as spare parts purchasing, maintenance, and aircraft lease.

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