THE AIRLINE, PT Garuda Indonesia Tbk (GIAA) is increasingly confident towards the end of the year. As proof, GIAA is targeting to record a profit of up to US$399 million by the end of 2023.
According to the President Director of Garuda Indonesia, Irfan Setiaputra, said that he was optimistic that the number of passengers could increase by 60% this year.
“This target is expected to be achieved after successfully restructuring debt at the end of 2022 and reducing aircraft rental costs,” he explained in an official statement received recently.
Irfan said that currently, GIAA is also focusing on flight strategies on profitable routes, including Jakarta-Singapore and Jakarta-Bali flights. On the other hand, GIAA has experienced a reduction in frequency from three flights a week to only two flights a week on less profitable routes.
Garuda Indonesia is optimistic about its performance prospects for the rest of this year because there will be sentiment from the high season, Umrah trips to the peak Christmas period.
Irfan explained that GIAA had ordered five narrow body type aircraft by the end of the third quarter of 2023. It is hoped that three of the five aircraft can be received more quickly.
“GIAA succeeded in reducing aircraft rental prices by 30%–50% after restructuring and now only pays aircraft rental fees according to the duration of use,” he said.
GIAA is projected to make a profit of US$589 million in 2024. In 2025 and 2026, GIAA is predicted to make a profit of US$631 million and US$647 million respectively. Just so you know, until the end of semester I-2023, GIAA earned operating revenues of US$1.39 billion. This value grew 58.84% annually from US$878.69 million.
From the bottom line, GIAA posted a loss attributable to the owners of the parent entity amounting to US$76.50 million. This is a reversal from a net profit of US$3.76 billion as of June 2022.
GIAA Chart by TradingView
Not only that, the merger between Pelita Air and Citilink, which is expected to be completed by the end of 2023, is expected to have a significant positive impact on GIAA’s efficiency.
This is expected to open up opportunities to increase operational synergy between the two airlines, reduce operational costs and improve service to customers.
“Garuda Indonesia Group will further strengthen its position in the domestic and international aviation market, so that it can encourage growth and competitiveness,” said Irfan. [sources/photo special]