JAKARTA (Yosefardi) – Flag carrier PT Garuda Indonesia Tbk (GIAA) mulls to do cost efficiency for escaping from the loss due to increasing fuel cost and rupiah depreciation.
GIAA book operating loss of US$234 million in first half of 2014, against profit of US$14.3 million in the first half of 2013. Fuel cost grew by almost 16%. While net loss was Rp211.74 million. Revenues only inched up 0.7% to Rp1.738 trillion.
GIAA plans to review its order/purchase of new planes and to postpone or close some international flight routes.
GIAA currently operates around 600 flights a day with consuming 1.8 billion liters of fuel, representing 20-25% of total operating expenses.
GIAA targets to buy 27 new planes this year, of which 18 units have been delivered. The airline will postpone flights to Mumbai, India, and Manila. It will also close flight to Taipei.
GIAA carried 13.3 million passengers during first half of 2014, a 12.1% growth compared to 11.87 million passengers in the same period of 2013.