Garuda targets a return to profit in 2018
Garuda Indonesia is targeting a return to profit next year after a loss in 2017 as the flag carrier works to reduce expenses and operations improve. The airline is predicting a profit of $75m in H2 ending December but won’t be able to post a profit for the 12-month period following a larger loss in the first six months of the year, CEO Pahala Mansury said. Losses in the first half totaled $284m, he said. The Indonesian carrier is boosting aircraft use by reducing flight turnaround time and cutting expenses, steps that will help Garuda turn in a profit next year, Mansury said. The executive, who took the helm six months ago, said Garuda aims to bring down its cost per available seat kilometer to 5.5 cents to 6 cents, from 6.7 cents currently. “We have been increasing the utilization rate of our aircraft and will continue to do so,” Mansury said. “This will be the key factor to determine whether we are profitable in future and whether our financials improve.” By comparison, cost per available seat kilometer across Singapore Airlines group, which includes budget carrier Scoot, was 6.83 Singapore cents (5 cents) in the latest fiscal quarter ended June.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-10-23/sky/garuda-targets-a-return-to-profit-in-2018
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Garuda targets a return to profit in 2018
Garuda Indonesia is targeting a return to profit next year after a loss in 2017 as the flag carrier works to reduce expenses and operations improve. The airline is predicting a profit of $75m in H2 ending December but won’t be able to post a profit for the 12-month period following a larger loss in the first six months of the year, CEO Pahala Mansury said. Losses in the first half totaled $284m, he said. The Indonesian carrier is boosting aircraft use by reducing flight turnaround time and cutting expenses, steps that will help Garuda turn in a profit next year, Mansury said. The executive, who took the helm six months ago, said Garuda aims to bring down its cost per available seat kilometer to 5.5 cents to 6 cents, from 6.7 cents currently. “We have been increasing the utilization rate of our aircraft and will continue to do so,” Mansury said. “This will be the key factor to determine whether we are profitable in future and whether our financials improve.” By comparison, cost per available seat kilometer across Singapore Airlines group, which includes budget carrier Scoot, was 6.83 Singapore cents (5 cents) in the latest fiscal quarter ended June.<br/>
