Garuda profits slide in 2013
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Garuda Indonesia experienced a sharp fall in profits last year, as high fuel prices and currency issues impacted the airline.
The Antara news agency reports that the national carrier generated a net profit of just US$11.2 million in 2013, down 90% compared to 2012. Company revenues climbed 7% to US$3.72 billion, but this failed to keep pace with a 13% rise in expenditure, which reached US$3.71bn.
These expenses included a 14% jump in Garuda’s fuel bill, to US$1.42bn – 38% of the airline’s total operating costs.
“Garuda Indonesia’s financial performance in 2013 was affected by rupiah depreciation and high fuel price,” Garuda’s president & CEO, Emirsyah Satar, was quoted saying by Antara at a press conference in Jakarta on Monday.
“Sixty percent of Garuda Indonesia’s operating cost is in the US dollar while the rest, 40%, in the rupiah. Fifty percent of its income meanwhile is in the US dollar and 50%… in the rupiah,” he explained.
Garuda’s passenger traffic rose 22% last year, to 25m passengers, driven by the arrival of 36 new aircraft, including its first four Boeing 777-300ERs.
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