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Garuda Indonesia upbeat it will book profit in Q1
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A Garuda Indonesia aircraft takes off from Ngurah Rai International Airport in Denpasar, Bali, on June 13, 2017. (Antara/Fikri Yusuf)
National flag carrier Garuda Indonesia was upbeat it would see an improved financial performance in the first quarter of 2018.
Last year, the airline suffered losses of US$216 million.
Garuda Indonesia president director Pahala Nugraha Mansury said in Jakarta on Thursday that the company had cut operational costs and increased its revenue in the first three months of the year, after implementing three strategies last year.
The three strategies were reviewing unproductive flight routes, particularly international routes, renegotiating with partners to optimize the quality of planes and gaining revenue from non-ticket sales.
“Last year, we completed 12 renegotiations and we plan to renegotiate nine other contracts this year. We’ve seen good impact from the renegotiations [on our corporate financial performance],” Pahala said in a press conference, as reported by kontan.co.id
Garuda Indonesia aimed to increase its revenue from cargo to $22 million per month this year, up from $17 million to $18 million per month in 2017, he said, adding that revenue from cargo next year was expected to increase to $23 million per month.
Pahala said the contribution of its subsidiary companies, most of which comes from low-cost airline Citilink and PT Garuda Maintenance and Facility Aero Asia (GMF), accounted for 23 percent of the company’s revenue, up from a share of 20 percent in 2017. (bbn)
Correction: An earlier version of this article misstated that Garuda had released its financial report for the first quarter of 2018. The company has yet to publish the report.
