Garuda Indonesia reported US$43.6 million in net loss in the January-September period compared to over US$51 million in net profit in the same period last year, but is confident things will turn around as peak season demand and expansion plans kick in.
If looking at 3Q2016 results alone, the airline posted a net income of US19.6 million.
Said Garuda Indonesia president and CEO Arif Wibowo: “This positive result was achieved through non-stop hard work in implementing the Sky Beyond business expansion strategy, which played an essential role in promoting the company’s performance in the quarter.”
The national carrier had started to serve new destinations in east Indonesia, namely Nabire, which is connected to Denpasar, Bali via Biak, Papua, and Maumere.
Garuda stated that the opening of these routes was a strategic step to strengthen its network in the domestic market. The airline carried 17.81 million passengers from January to September this year, of which 14.55 million were domestic.
The loss in 1H2016 had been projected to turn around in the following quarter in light of the peak season, and Arif now added that the airline is “quite optimistic” it would maintain positive growth up to the end of the year.
