Garuda Flies into the Black, Finally

(8/4/2007)

After many years of writing its financial results in red ink, Garuda Indonesia closed the first semester of 2007 by reporting a net profit of Rp. 148 billion (approximately US$16 million). In an impressive turn-around, the current profit results stand in stark contrast to the first six months of 2006 when the Airline reported losses of Rp. 361 billion (approximately US$39.24 million).

Garuda's president director, Emirsyah Satar, attributes the airline's improved performance to increased passenger loads, higher airfares and more efficient use of the company's armada.

Quoted in the Jakarta Post, Satar said: "We managed to accommodate more passengers in fewer airplanes due to an improvement in the utilization rate of each plane form an average of 8 hours and 45 minutes to 9 hours and 17 minutes a day."

Revenues increased 11.5% during the first 6 months of 2007 reaching Rp. 5.8 trillion (approximately US$63 million).

The Airline currently produces revenues equivalent to US$0.072 cents per seat per flown kilometer, an improvement in revenue yield of 7.5% over the same period last year.

Garuda is projecting a 20% improvement in revenues during the second half of 2007.