Sign up | Log in



Home  >>   Daily News  >>  Indonesia  >>Companies>>Garuda chalks up profits in Q3 despite haze woes
NEW UPDATES Asean Affairs  28 October  2015  

Garuda chalks up profits in Q3 despite haze woes

National flag carrier Garuda Indonesia maintained a net profit in the first nine months of the year, a rebound from last year’s loss although flight cancellations caused by haze in Sumatra and Kalimantan undermined its financial condition, an executive has said.

“As we were affected in the third quarter [by the haze], the net income is still significant compared with last year,” Garuda Indonesia president director Arif Wibowo said on Friday.

Its net income year-to-date (YTD) stood at US$51.4 million as of September, a significant increase from the $220.1 million loss over the same period last year.

He estimated that the company’s potential losses could reach $8 million, even though it still posted $2.845 billion in total revenue as of September, slightly up from $2.831 billion in the same period last year.

“Our revenue has been hampered by the haze, the volcano [eruption] and other incidents. Our opportunity loss almost hit $8 million, with $6 million being passenger-related. We could have grown [our revenue] by 5 percent,” he said.

Over the past few months, provinces such as Riau, Jambi, North Sumatra, South Sumatra and Central Kalimantan have been struggling with smoke from man-made and natural land and forest fires.

The ongoing disaster has hampered a lot of flights as the worst-hit areas experience very limited visibility. In Pontianak, West Kalimantan, visibility stood at 250 meters on Oct. 22, while airport authorities generally need a minimum visibility of 1,500 meters to give aircraft landing or take-off clearance.

He also added that the recent Mount Raung eruption had also negatively impacted the company’s revenue stream.

Garuda chief financial officer Ari Askhara added that so far, the company had spent at least $3 million dollars on compensation for passengers in August and September.

Garuda still banked profits from various measures aimed to reduce operational costs by boosting efficiency and benefiting from a lower fuel price.

The company managed to decrease its total expenses in the first nine months this year to $2.72 billion from $3.08 billion in the same period last year.

“If we have a good network, good flight deployment, crew scheduling, crew rotation, it will minimize costs. We have also done economical refueling, where we detect places with higher fuel prices and try to refuel in places with lower prices,” Arif said.

He also said that the company had optimized planes, to minimize losses from aircraft deployment.

Garuda recorded positive passenger growth, with 17.69 million passengers flying with the airline in the first nine months of the year, compared with 15.56 million passengers in the same period last year.

Its share in the domestic market has also rose to 44 percent in the first nine months compared with 37 percent in the same period last year, while its share in foreign markets reached 28 percent compared with 22 percent last year.

Garuda will also boost its flight frequency for umrah (minor pilgrimage to Mecca), as operating revenue from non-scheduled airlines from umrah, among others, made up 6.20 percent of its total operating revenue.

“We want to increase services to five times a day from current three times daily,” Arif said, adding that the company has also taken advantage of its participation in haj pilgrimage flights. The company also remained upbeat that the fourth-quarter peak season would help it reach its targeted revenue of around $4 billion by the end of the year.

“It’s tough with a rupiah depreciation that has hit 12 percent. But even if revenue is down, if the costs are down, as they are at the moment, we still book a profit,” Ari said.

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                           October 28 , 2015 Subsribe Now !
• Dong Nai attracts $2 billion in investment Subcribe: Asean Affairs Global Magazine
• BI defends dovish stance despite dilemma
• ‘AEC may not meet December deadline for integration’
Research Reports
on Thailand 2007-2008

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

• Brunei’s foreign direct investments drop by 25.9 per cent in 2014 
Garuda chalks up profits in Q3 despite haze woes
Asean Analysis                   October 22, 2015
• Asean Analysis October 22, 2015
Climate justice advocates call for fair shares,fair deal and fair process
Advertise Your Brand

Asean Stock Watch  October 26,   2015
• Asean Stock Watch-October 26, 2015
The Biweekly Update
• The Biweekly Update October 16, 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

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2019 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand