JAKARTA (TheInsiderStories) – The newly appointed President Director of PT Garuda Indonesia Tbk (IDX:GIAA) Pahala N. Mansury, has one huge task on his hand, namely turning the company in green again after suffering net loss in the first quarter of 2017.
As shown by the company’s unaudited first quarter 2017 financial report, Garuda Indonesia recorded net loss of US$ US$99.08 million in the first quarter compared to net profit of US$834,776 in the same quarter last year.
Its comprehensive net loss for the period was at US$96.50 million compared to comprehensive net profit of US$22.28 million.
The net loss was partly attributable to higher operating expenses, eroding the company’s improved operating revenues.
The company recorded operating revenues of US$909.45 million, rose 6.2 percent from US$855.99 million, while operating expenses escalate to US$1.02 billion, up from US$849.55 million. The highest increase was flight operations which rose to US$613.61 million, compared to US$495.54 million in the same period last year.
As a result, the company booked operating loss of US$109.35 million, compared to operating profit of US$15.84 million.
In the quarter, he airliner transporting 8.4 million passengers, up 26.1 percent from the same period last year.
As a result of progressive losses, the airline needs to make “fundamental transformation” in the aspect of financial mitigation. “Although Garuda Indonesia manages to record an increase of 6.2 percent in revenues, operating expenses rose 21.3 percent, resulting in net loss of US$99.1 million in the period,” Garuda Indonesia’s President Director Pahala said. (*)