Jakarta. National flag carrier Garuda Indonesia is optimistic about its performance this year despite last year's losses.
Garuda booked a $213.4 million loss in 2017, despite a $9.4 million profit in 2016. Its revenue, however, went up 8.1 percent to $4.2 billion, the company said in a statement on Monday (26/02).
"We expect that this year our business performance will recover. In the first quarter there may be losses, as we are entering low-season, but we expect to post a profit for the full year," Garuda Indonesia president director Pahala Mansury said, as quoted by Investor Daily.
The carrier's losses were mainly due to a 25 percent increase in its fuel expenses to $1.15 billion. It also had to spend $145.8 million to participate in the government's tax amnesty program last year, which eroded profitability.
In the fourth quarter alone, the company booked a $8.5 million profit, down 84 percent from the corresponding period a year earlier.
In a bid to improve efficiency, Garuda is renegotiating contracts with an aircraft manufacturer to lower the cost of its fleet by 25 percent.
According to the latest data, the carrier's seat-load factor — which indicates how efficiently it makes use of its seating capacity — improved to 74.7 percent from 73.1 percent in 2016.
Previously, Pahala said he is confident about a further increase in revenue and net income, as the company will open a route from London to Melbourne via Jakarta.
Garuda targets to reap $4.9 billion in revenue this year, with a modest profit about $8.9 million.
In October, the carrier announced it plans to raise Rp 2 trillion ($147 million) through a global bonds sale in June.