Feb 1, 2011

Garuda eyeing above Rp1 trio profit

PT Garuda Indonesia (Persero) is eyeing net profit growth, surpassing Rp1 trillion this year or surged by 42%-45% from its unaudited profit in the end of last year, reaching Rp420 billion-Rp450 billion.
Garuda Finance Director Elisa Lumbantoruan said that Garuda expects such profit jump to be backed by the additional new routes and flights frequencies as well as the increase over the load factor.
“We expect our profit to surpass IDR1 trillion, assuming there is a 76% increase over our load factor from last year’s level at 69% and the improving yield of 5%-10%. We will also escalate our routes and frequencies. The 2010 report is still audited, the unaudited report reached Rp420 billion-Rp450 billion, he said today.
In the meantime, regarding to the company’s revenue, Elisa was not able to further elaborate as it will highly depend on the current market condition as well as the price of the aviation fuel.
“The revenue is rather difficult to be predicted since it highly depends on the current condition and the fuel price. Thus, we should first see whether the profit rises or not,” he said.
Elisa said that this year the company plans to add the flight route from Jakarta to Gorontalo for domestic route and Jakarta-Taipei and Jakarta-Mumbai for the international route.
The company also plans to add 11 new planes with the sale purchasing mechanism as it will also terminates the operational of 10 old planes. 

Disclosure: No position at the stock mentioned above.  

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