JAKARTA (TheInsiderStories) – Flag-carrier PT Garuda Indonesia Tbk (IDX:GIAA) has vowed to return to profitability this year, on anticipated aviation industry improvement, after recording losses last year.
“We hope for improved performance in 2018. In the first quarter, we may still have to report losses as we are still in a low season. However, for the full year, we hope to book a profit,” President Director of Garuda Indonesia Pahala N. Mansury stated late Monday (26/02).
The company expects to book a net profit of US$8.7 million, or around Rp117.45 billion, this year, on revenues of US$4.9 billion or Rp66.15 trillion, higher than last year.
In 2017, Garuda booked net losses of US$213.4 million or Rp2.88 trillion, compared to a net profit of $9.4 million the previous year, driven by higher expenses, in particular aviation fuel, along with extraordinary expenses, which amounted to $145.8 million, including settling previous debts under the tax amnesty program.
Meanwhile, revenues reached $4.2 billion, up 8.1 per cent from the $3.9 billion reported the previous year. In 2016, Garuda booked a thin net profit of just $9.4 million.
On a quarterly base, the company booked net losses of $99.1 million in the first quarter, a net loss of $38.9 million in the second quarter, moving to a net profit of $61.9 million in the third quarter and net profit of $8.5 million in the fourth quarter. The company hopes the positive trend recorded in the second semester will continue throughout next year.
In 2017, the airline transported 36.2 million passengers, up 3.5 per cent from the 35 million passengers the previous year. This figure includes those transported by subsidiary Citilink, totaling 12.3 million.
The airline’s revenues were mainly contributed by passenger transportation. In order to boost revenues, the company plans to increase its efforts to secure more cargo transport, as last year, revenues from cargoes reached $237.1 million.
In addition, the company managed to renegotiate airline lease fees with lessors last year, which resulted in a 25-per cent reduction.
The Company currently operates a fleet of 202 aircraft with an average age of 5 years, of which 144 units are operated by Garuda Indonesia and 58 by Citilink.