Garuda Indonesia loss widens in first quarter

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garuda_indonesiaGaruda Indonesia on April 30 said its net loss widened sharply in the first quarter, as the national flag carrier continued to struggle with rising competition.

The airline posted a net loss of $163.9 million for the three months ended March 2014, compared with a loss of $33.75 million in the same period a year earlier.

Garuda and other carriers in the region – such as Lion Air and Malaysia’s AirAsia – are facing potential over-capacity as deliveries of new planes accelerate and airlines expand into each other’s markets.

The airlines have also had to contend with a rupiah which fell more than 20 per cent against the US dollar in 2013. So far this year, it has risen around 5 per cent.

Earlier in April, the airline said it will take over Tigerair Mandala to strengthen its regional network. It also plans to open three new international destinations in 2014, which are London, Manila and Mumbai.

The airline at the end of 2013 had 140 airplanes, consisting of 23 company-owned and 117 leased ones. Of the total, 30 airplanes were operated by Citilink, with 25 leased and five company-owned airplanes.

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Reading Time: 1 minute

Garuda Indonesia on April 30 said its net loss widened sharply in the first quarter, as the national flag carrier continued to struggle with rising competition.

Reading Time: 1 minute

garuda_indonesiaGaruda Indonesia on April 30 said its net loss widened sharply in the first quarter, as the national flag carrier continued to struggle with rising competition.

The airline posted a net loss of $163.9 million for the three months ended March 2014, compared with a loss of $33.75 million in the same period a year earlier.

Garuda and other carriers in the region – such as Lion Air and Malaysia’s AirAsia – are facing potential over-capacity as deliveries of new planes accelerate and airlines expand into each other’s markets.

The airlines have also had to contend with a rupiah which fell more than 20 per cent against the US dollar in 2013. So far this year, it has risen around 5 per cent.

Earlier in April, the airline said it will take over Tigerair Mandala to strengthen its regional network. It also plans to open three new international destinations in 2014, which are London, Manila and Mumbai.

The airline at the end of 2013 had 140 airplanes, consisting of 23 company-owned and 117 leased ones. Of the total, 30 airplanes were operated by Citilink, with 25 leased and five company-owned airplanes.

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