Sign up | Log in



Home  >>   Daily News  >>   Indonesia  >>Aviation  >> Garuda sees clear skies despite booking $373m loss in 2014
NEW UPDATES Asean Affairs  24 March  2015  

Garuda sees clear skies despite booking $373m loss in 2014

National flag carrier Garuda Indonesia has experienced positive financial performance in the first two months of this year after ending 2014 with a net loss of US$373 million, the company’s top executive says.

The company posted a $1.2 million profit in February versus $77.4 million loss in the same period last year, as passenger numbers grew 10.8 percent to 1.72 million during the month.

In January, passenger growth reached 15.1 percent year-on-year (yoy) to 1.87 million, albeit booking a $2.8 million loss in the first month of the year.

These developments are considered an improvement after the carrier faced turbulence last year, according to Garuda Indonesia president director Arif Wibowo.

The flag carrier booked a $373 million net loss in 2014 — worsening from a $11.2 million net profit in 2013 — as foreign exchange losses and rising costs squeezed its revenues.

Garuda’s operating loss amounted to $399.31 million last year, compared with $62.94 million in the previous year. Losses before tax reached $460.53 million versus $13.65 million profit in 2013.

Arif attributed the firm’s poor financial performance to the weakening of the rupiah against the US dollar, the rising price of fuel, which touched a record high last year, as well as regulatory aspects that were less favorable for the country’s aviation industry.

“Apart from the external aspects, Garuda was in an investment stage in 2014, during which we brought in 35 new aircraft for the expansion of both Garuda and Citilink,” Arif, who was installed Garuda CEO last December after leading subsidiary Citilink, told reporters during a press conference on Friday.

The new aircraft consist of two Boeing 777-300 ERs, four Airbus 330-300s, 12 Boeing 737-800 NGs, Bombardier CRJ-1000s, three NextGens, six ATR 72-600s, and eight Airbus A320s for Garuda’s low-cost arm Citilink — bringing total operated aircraft during 2014 to 169 with an average aircraft age of four-and-a-half years.

Garuda’s finance and risk management director I Gusti Ngurah Askhara Danadiputra said that with the strengthening of the US greenback and unstable fuel prices, the airline would review its currency and fuel hedging strategies.

Arif also said that the airlines would improve their revenue-generating strategies by closing unprofitable routes, delaying the opening of several new routes and focusing on expansion to China and the Middle East this year.

The firm would also restructure its cost driver to increase efficiency without reducing the airline’s quality of service, he added.

Through these programs, Garuda is expected to save $146.94 million and another $172.25 million in savings are forecast this year due to the drop in global oil prices, which has resulted in lower-priced airline fuel (avtur).

These efforts were expected to improve Garuda’s performance this year, concluded Arif.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories                           March  24 , 2015 Subsribe Now !
• Made-in-Viet Nam oil rigs go overseas Subcribe: Asean Affairs Global Magazine
• Japanese firms look to expand
• Aerospace industry in for big business in Malaysia
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• Singapore's first prime minister Lee Kuan Yew dies at 91
• Garuda sees clear skies despite booking $373m loss in 2014
Asean Analysis                    March 20, 2015
• Asean Analysis March 20, 2015
Aftermath Of Botched Philippines Raid Should Concern Washington
Advertise Your Brand

Asean Stock Watch  March 23,  2015
• Asean Stock Watch-March 23, 2015
The Biweekly Update
• The Biweekly Update March 20, 2015

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand