Garuda Indonesia books USD29.3 million profit in H1 2015

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Indonesian flag carrier Garuda Indonesia reported a first-half net profit of $29.3 million, reversed from a $201.3 million loss in the year-ago period. The airline said the improved results were due to an improvement in applied efficiency strategies and better aircraft utilization through what it called its Quick Wins program.

Garuda CFO Ari Askhara said the better results could be attributed to a range of “operational initiatives including cost reductions as well as fuel and currency hedging.”

Operating revenue rose 4.7% to $1.84 billion compared to $1.76 billion in the prior-year period, while expenses dropped by 11.6% from $1.99 billion to $1.76 billion.

Traffic for the entire Garuda group rose by 19.5% to 15,900,960 passengers, with Garuda’s domestic and international traffic up 15.3%, while subsidiary Citilink registered a significant 4,345,642 passengers, a 32% rise to compared to the year-ago period.

The airline saw a 7.2% increase in ASKs to 26.08 billion. Load factor also rose 6.8% year-over-year to 75.8%.

Garuda also saw a 7% rise in both domestic and international market share on last year, with domestic up to 44%, and international up to 28%.

By the end of 2015, Garuda Indonesia will operate 190 aircraft with an average fleet age of 4.3 years, and is committed to fleet expansion to 250 aircraft by the end of 2025.