Garuda posts sharp fall in first-quarter operating profit
Garuda Indonesia posted an operating profit of $616,000 in Q1 of 2020, a sharp fall from the $49.4m profit in the same period last year. Revenue for the quarter ended 31 March fell by 30.1% year-on-year to $768m, led by a 29.2% decline in revenues from scheduled passenger services to nearly $655m. The carrier’s expenses declined 9.9% to nearly $946m, due to a reduction in costs associated with flying operations, airports, as well as passenger services. On the other hand, administrative and aircraft maintenance costs increased. Despite the operating profit, the airline recorded a net loss of $120m due to significantly higher finance costs, compared to a $20.5m net profit in Q1 2019. As of 31 March, Garuda had $163m in cash and cash equivalents, down from $337m a year before. The carrier says it is exploring options to overcome challenges caused by the Covid-19 pandemic. These include rightsizing capacity, offering discounts on selected routes, optimising cargo and charter services, renegotiating with its vendors to reduce cost and obtain payment delays, and early termination of aircraft leases.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-07-02/sky/garuda-posts-sharp-fall-in-first-quarter-operating-profit
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Garuda posts sharp fall in first-quarter operating profit
Garuda Indonesia posted an operating profit of $616,000 in Q1 of 2020, a sharp fall from the $49.4m profit in the same period last year. Revenue for the quarter ended 31 March fell by 30.1% year-on-year to $768m, led by a 29.2% decline in revenues from scheduled passenger services to nearly $655m. The carrier’s expenses declined 9.9% to nearly $946m, due to a reduction in costs associated with flying operations, airports, as well as passenger services. On the other hand, administrative and aircraft maintenance costs increased. Despite the operating profit, the airline recorded a net loss of $120m due to significantly higher finance costs, compared to a $20.5m net profit in Q1 2019. As of 31 March, Garuda had $163m in cash and cash equivalents, down from $337m a year before. The carrier says it is exploring options to overcome challenges caused by the Covid-19 pandemic. These include rightsizing capacity, offering discounts on selected routes, optimising cargo and charter services, renegotiating with its vendors to reduce cost and obtain payment delays, and early termination of aircraft leases.<br/>
