News Around

Garuda airline expects to make profit in 2018

Indonesia’s national flag carrier Garuda expects to end 2018 in profit and is targeting a net profit of 1 trillion rupiah (US$69.03mil) for 2019, its chief executive said on Friday.

PT Garuda Indonesia (Persero) Tbk saved US$96mil by working with lessors to restructure the financing of its planes until November 2019. The result would be a marked improvement for the airline, which reported a US$116.86mil net loss for the first six months of 2018. Askhara in September declared Garuda had abandoned hopes of making a profit this year, after struggling with fuel costs and a rising rupiah versus the US dollar.

The new partnerships include Garuda taking operational control of rival Sriwijaya Group in November, gaining a majority share of the fast-growing domestic aviation market. AirAsia’s president director Dendy Kurniawan confirmed in a statement that early talks with Garuda were underway, with “various forms of cooperation to support the industry being discussed”, but noted no final decision has been reached.

The plant would be for the domestic market and supply 50% of its output to Garuda, 48% to Lion Air and 2% to AirAsia Group Bhd. Domestic air traffic more than tripled in Indonesia over the past decade as rising prosperity and lower fares made flying affordable for more people. With 129 million passengers in 2017, the Southeast Asian country is the world’s 10th-largest aviation market and is projected to continue growing.

Related posts

Hina Rabbani Khar predicts who will win the US election

Yumna Tirmizi

Read how much tax did Pakistani political elite pay last year

Brands Magazine

Pakistan outranks India in mobile broadband ranking

Isra Shams

Leave a Comment