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Garuda eyes 30% cargo growth after 'great drop' in passenger flights
The company expects demand for international cargo services, whether for commercial or noncommercial purposes, to drive the business segment’s growth.
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A Garuda Indonesia Boeing 777-300ER arrives at Soekarno-Hatta International Airport in Tangerang, Banten, on April 13, carrying 30 tons of personal protective equipment from Shanghai, China. The air carrier expects its cargo business segment to grow 30 percent this year. (Courtesy of Tanoto Foundation)
N
ational flag carrier Garuda Indonesia hopes to achieve 30 percent growth in its cargo business segment this year, compared to the usual single-digit growth in prepandemic years, to make up for big losses in passenger flights.
Garuda Indonesia president director Irfan Setiaputra told reporters on Thursday that demand for international cargo services, whether for commercial or noncommercial purposes, was expected to drive the business segment’s growth.
For example, the company is working on establishing a direct route from Manado, North Sulawesi, to Narita, Japan, to transport fresh fish to the latter city, he added.
“We will continue to focus on the cargo business and we understand that in this pandemic condition, the cargo business will grow,” he said in an online press conference.
Expanding its cargo business has become Garuda’s chief strategy to stay afloat amid the pandemic, which continues battering its passenger flight business as countries impose travel restrictions.
Read also: Garuda switches focus to cargo, chartered flight businesses amid ‘mudik’ ban
In 2020, Garuda’s cargo earnings reached US$271.6 million, down a milder 16.9 percent year-on-year (yoy), compared to its passenger segment, which fell 73 percent to $929.0 million, according to the publicly listed company’s financial report.
