Garuda Indonesia Posts First-Half Loss as Finance Costs Soar
4 Sep 2013 23:12:04
State-controlled airline Garuda Indonesia swung to a loss in the first half as finance costs from the company's expansion plans outpaced revenue from higher passenger numbers.
Garuda and its subsidiaries posted a net loss of $10.9 million in the January-June period, compared to $1.9 million profit in the same period last year, according to the flag carrier's report released on Friday.
The airline has five direct subsidiaries including budget airline Citilink and hotel-and-catering operator Aero Wisata.
Revenue rose by 14 percent to $1.7 billion, but an increase in operational costs, including fuel prices and wages, resulted in lower operational income at $14.3 million, which was down 0.7 percent.
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