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Flying More, Earning Less

Garuda Blames Q1 Losses on Worldwide Seasonal Decline in Air Travel

(5/4/2013) Indonesian national flag carrier Garuda Indonesia recorded a net loss in Q1 of 2013 amounting to US$33.7 million, a worsening by 215% over the results reported by the Airline in Q1 2012.

Bisnis.com quoted the CEO of Garuda, Emirsyah Satar, who blamed the drop in profitability on reduced demand for seats affecting many carriers internationally.

Said Satar at a press conference in Jakarta on Tuesday, April 30, 2013, ”So this downturn was not only experienced by Garuda, but by all airlines.”

He went on to explain that an annual cyclical slowdown in airline traffic occurs worldwide during Q1. Adding, “the factor of extreme weather during Q1 of each year also contributes to reduced demand.”

The financial director of Garuda, Handito Hardjono contributed that a number of factors converged to reduce profit by 20.7% or US$20.1 million over the first three months of the year.

And, while the Airline suffered losses in Q1, Garuda's income actually experienced a 12.5% increase from US$717.4 million in 2012 to US$807.2 million for the first quarter of 2013.

Garuda Indonesia Group’s market share increased from 30,3% to 35.2% in Q1 2013, These market share figure also include Garuda’s subsidiary Citilink who managed to increase their market share in Q1 from 3% to 6.9%.

Passenger uplift by Garuda during Q1 2013 increased 20.7% to 5.56 million passengers. Meanwhile, cargo uplift increased 24.2% totaling 81.300 tons.

Flight frequencies flown by Garuda increased 23.5% operating 44,224 flights during the first quarter of 2013.

Also during the first quarter of 2013, Garuda took delivery of four new Airbus A320s and two Bombardier CRJ-199s

Garuda Indonesia now operates a fleet of 112 planes.