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A Problem Most Taxing

Indonesia AirAsia Loses US$35.9 million after Taxes in 2017


Bali News: Indonesia AirAsia, Dendy Kurniawan, Mount Agung
Click Image to Enlarge

(4/8/2018)

The Jakarta Post and Kompas.com report that PT Indonesia AirAsia, the AirAsia affiliate serving international routes, has recorded financial losses totaling Rp. 512.96 billion (US$35.9 million) in 2017, blaming the losses on the heavy tax burden of the company. 

 
Prior to taxes, AirAsia Indonesia counted a total profit of Rp. 300.29 billion in 2017, increasing from Rp. 92.49 billion in 2016. 
 
The airline credits the increase in operational profitability to improved operational efficiency. 
 
Company revenues decrease to Rp. 3.82 trillion by the end of 2017, down slightly from Rp. 3.89 trillion in 2016. 
 
Dendy Kurniawan, Indonesian AirAsia president said: "The firm has recorded profit in the last two years, and it has increased operational efficiency so it can push down operational costs.” 
 
In 2017 the Airline reduced operational cost by 7.14% and focused on deploying its fleet of aircraft on developing profitable routes. 
 
The Airline blamed to decrease in revenues in 2017 to declining passenger numbers in late 2017 linked to the eruption of Mount Agung.


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