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Garuda not likely to meet FY2010 target, bottom line to improve over next year

10-Nov-2010 11:33 AM

Garuda Indonesia released corrected financial results* for the nine months ended 30-Sep-2010, which showed the carrier’s net profit decline 81% year-on-year from IDR1000 billion (USD123.4 million) to IDR194 billion (USD21.8 million) despite a 15.5% increase in revenues to IDR12,700 billion (USD1.4 billion) (Dow Jones, 09-Nov-2010). Garuda President Director Emirsyah Satar stated he expects the carrier’s bottom line to improve next year due to higher revenue and lower cost of operations. However, the carrier stated it is unlikely to meet this year’s profit target of IDR1150 billion (USD129.2 million) due to expansion plans (Jakarta Globe, 09-Nov-2010).

*Based on the conversion rate at USD1 = IDR8900