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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