National flagship carrier Garuda Indonesia has announced positivefinancial outcomes in the first two months of 2015, following a net lossof 373 million USD last year.
The airlinereported a combined profit of 3 million USD in January and February,opposing a 77.4 million USD loss in February alone last year.
The volume of passengers grew 15 percent in January and 10.8 percentin February to an average of over 1.7 million travellers.
The growths have marked improvements after a turbulent 2014 for thecarrier, said Garuda Indonesia President Director Arif Wibowo.
He believed the weakening of the rupiah against the USD, soaring fuelprices, which hit a record high last year, and difficult regulatoryconditions squeezed its annual revenue.
Garuda’sFinance and Risk Management Director I Gusti Ngurah Askhara Danadiputrasaid that the strengthening of the US currency and unstable fuel pricesnecessitate a review of the airline’s currency and fuel hedgingstrategies.
The firm will improve its revenuestrategies by closing less profitable routes, delaying the opening ofnew routes and shifting its focus on expansions in China and the MiddleEast this year, he added.
Its costs will be also restructured to increase efficiency without lowering service quality, he stressed.
Through these changes, Garuda expects to save around 147 million USDthis year, separate from another 172.25 million USD in forecastedsavings, owing to dropping global oil prices and reduced fuel costs.-VNA
The airlinereported a combined profit of 3 million USD in January and February,opposing a 77.4 million USD loss in February alone last year.
The volume of passengers grew 15 percent in January and 10.8 percentin February to an average of over 1.7 million travellers.
The growths have marked improvements after a turbulent 2014 for thecarrier, said Garuda Indonesia President Director Arif Wibowo.
He believed the weakening of the rupiah against the USD, soaring fuelprices, which hit a record high last year, and difficult regulatoryconditions squeezed its annual revenue.
Garuda’sFinance and Risk Management Director I Gusti Ngurah Askhara Danadiputrasaid that the strengthening of the US currency and unstable fuel pricesnecessitate a review of the airline’s currency and fuel hedgingstrategies.
The firm will improve its revenuestrategies by closing less profitable routes, delaying the opening ofnew routes and shifting its focus on expansions in China and the MiddleEast this year, he added.
Its costs will be also restructured to increase efficiency without lowering service quality, he stressed.
Through these changes, Garuda expects to save around 147 million USDthis year, separate from another 172.25 million USD in forecastedsavings, owing to dropping global oil prices and reduced fuel costs.-VNA
