Garuda’s Net Profit Surges 50.8% in 2009

National flag carrier PT Garuda Indonesia (Persero) posted net profit rise of 50.8% in 2009 to Rp 1.01 trillion compared to Rp 669 billion in previous year, partly due operational efficiency, the company’s president Garuda Emirsyah Satar said.

The surge in net profit came in despite a 6.7% revenue decline to Rp 16.7 trillion, against Rp 17.8 trillion in previous year. Emirsyah was quoted by Kontan online on Thursday as saying that the decline in revenues was attributable to falling ticket price in line with at 40-percent drop of the aviation fuel (avtur) in international market. Fuel contributed between 30% to 40% to the airline’s operational costs.

"Although the number of passengers edged up by 2% to 10.3 million from 10.1 million, with average load factor of 74%, revenues did not increase due to ticket price decline,” he said.

He added the company plans to allocate US$100 million in capital expenditure this year. Portion of this will be allocated to purchase 23 Boeing 737-800NG and one unit of Airbus 330-200. The purchase will be financed from internal cash-flow. (Roffie Kurniawan)

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