Garuda Indonesia returns to profit on hedging, cost reductions
Garuda Indonesia returned to profit for the first nine-months of 2019 with a $122.8m net profit, reversing the $110.2m loss over the same period last year. The Indonesian flag carrier earned $3.5b in operating income, boosted by a $51.7m earning on hedge transactions. Operating costs eased 2% year-on-year (YOY) to $1.9b, most significant items were “passenger services expenses” and “administrative expenses,” although sales, promotion and maintenance expenses increased. Domestic traffic, especially generated from capital Jakarta, grew the fastest at 16.5% YOY, partly because the carrier raised domestic airfare against the president’s call to make airfare affordable. Most international routes declined, except for Tokyo and Sydney flights. Garuda did not reveal operating statistics for the period.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-11-06/sky/garuda-indonesia-returns-to-profit-on-hedging-cost-reductions
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Garuda Indonesia returns to profit on hedging, cost reductions
Garuda Indonesia returned to profit for the first nine-months of 2019 with a $122.8m net profit, reversing the $110.2m loss over the same period last year. The Indonesian flag carrier earned $3.5b in operating income, boosted by a $51.7m earning on hedge transactions. Operating costs eased 2% year-on-year (YOY) to $1.9b, most significant items were “passenger services expenses” and “administrative expenses,” although sales, promotion and maintenance expenses increased. Domestic traffic, especially generated from capital Jakarta, grew the fastest at 16.5% YOY, partly because the carrier raised domestic airfare against the president’s call to make airfare affordable. Most international routes declined, except for Tokyo and Sydney flights. Garuda did not reveal operating statistics for the period.<br/>
