Garuda’s half-year loss widens as expenses creep up
Garuda Indonesia fell deeper in the red for its half-year earnings, as an increase in costs outpaced a rise in revenues. For the six months ended 30 June, the Jakarta-based airline group posted a pre-tax loss of $113m, compared to the $109m loss it made in the year-ago period. This was despite an 18% increase in operating revenue to over $1.6b, led mainly by growth in airline passenger revenue. During the half-year period, Garuda saw its domestic passenger volume grow by 42% to over 4.1m, while international traffic rose 56% to 1.1m. However, Garuda noted that passenger yields shrank compared to the previous year, with domestic yields seeing the sharpest decline at 12%. Moreover, the airline group, which also comprises low-cost unit Citilink, recorded a 23% jump in operating expenses, led by a sharp increase in maintenance-related costs (up 61%) and flight operation costs (up 15%). Garuda posted a net loss of $101.6m, compared to the $76m loss in the year-ago period. As at the end of June, mainline operator Garuda had 59 aircraft in its fleet, five more compared to the same period last year, while Citilink saw a reduction of three jets to 42 aircraft. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2024-10-01/sky/garuda2019s-half-year-loss-widens-as-expenses-creep-up
https://portal.staralliance.com/cms/logo.png
Garuda’s half-year loss widens as expenses creep up
Garuda Indonesia fell deeper in the red for its half-year earnings, as an increase in costs outpaced a rise in revenues. For the six months ended 30 June, the Jakarta-based airline group posted a pre-tax loss of $113m, compared to the $109m loss it made in the year-ago period. This was despite an 18% increase in operating revenue to over $1.6b, led mainly by growth in airline passenger revenue. During the half-year period, Garuda saw its domestic passenger volume grow by 42% to over 4.1m, while international traffic rose 56% to 1.1m. However, Garuda noted that passenger yields shrank compared to the previous year, with domestic yields seeing the sharpest decline at 12%. Moreover, the airline group, which also comprises low-cost unit Citilink, recorded a 23% jump in operating expenses, led by a sharp increase in maintenance-related costs (up 61%) and flight operation costs (up 15%). Garuda posted a net loss of $101.6m, compared to the $76m loss in the year-ago period. As at the end of June, mainline operator Garuda had 59 aircraft in its fleet, five more compared to the same period last year, while Citilink saw a reduction of three jets to 42 aircraft. <br/>
