Garuda Turns Red, Operating Loss Rp67 Billion - The Indonesia Today

Flag carrier Garuda Indonesia (GIAA) booked operating loss of Rp67.16 billion last year against operating profit of Rp918 billion.

Garuda reported total operating revenue of Rp19.5 trillion last year, increased 9.37% from 2009, mainly due to increasing revenue from scheduled airline service, while non-scheduled airline service declined substantially in the period.

Total operating expenses, meanwhile, increased 25.7% to Rp19.6 trillion, mainly due to increasing cost of flight operation, passenger service, maintenance and overhaul.

But Garuda reported other income of Rp126 billion last year against charges of Rp55 billion in 2009, thanks to Rp162 billion gain on sale and leaseback and lower interest expenses/financial charges.

As a result, Garuda Indonesia reported income before tax of Rp75 billion, slashed 91% from 2009. Garuda, however, booked extraordinary item of Rp225 billion and tax benefit of Rp263 billion. These have made Garuda reporting net profit of Rp515 billion, slashed 49% from 2009's net profit of Rp1.018 trillion.