PT Garuda Indonesia Tbk (GIAA) said the target at the end of 2019 was far from the target set.

According to Acting Garuda Indonesia Managing Director Fuad Rizal said the cause was the lack of revenue from the ground handling management services business at PT Gapura Angkasa, a subsidiary owned by the company together with PT Angkasa Pura II.

“But at the end of this year there will still be a net profit. This year, GIAA has set a revenue target of US$5.4 billion and net profit at the level of US$71.0 million. From the third quarter financial statements of 2019, GIAA pocketed US$3.54 revenue billion and net profit of US$122.42 million. In the same period last year, GIAA still reaped losses of US$114.08 million,” he said.

Fuad said there would be a decline in financial performance in September 2019. However, his side could not confirm how much depreciation would occur, because the third quarter financial statements were currently in the process of auditing by public accounting institutions.

“This is due to impairment, following the end of our cooperation with Sriwijaya Air Group some time ago,” Fuad added.

For information, Garuda Indonesia’s ownership in PT Gapura Angkasa, was diluted due to an increase in capital by Gapura. As a result, there was a decline in ownership from 58.75% to the majority owned by Angkasa Pura II.

Based on the company’s financial statements as of September 2019, ground handling services contributed US$42.52 million to the company’s total revenue of US$3.54 billion. Furthermore, in the third quarter of 2019, Garuda’s total revenue came from scheduled flights of US$2.79 billion, unscheduled flights of US$249.9 million, and other revenues of US$494.89 million.

The contribution of subsidiaries from the total group covers 28.8% which consists of accruing Citilink, GMFAero Asia, Aero Wisata, Saber, Asyst, and Gapura. [ special]