Garuda on track to post 2007 profit

The Jakarta Post, Jakarta

After booking Rp 121 billion (around US$14 million) in profit in the first four months of the year, national flag carrier PT Garuda Indonesia is on course to post a profit this year, ending three years of losses and despite this year's Yogyakarta disaster in March.

"This is a good start to the year," Garuda spokesman Pujobroto said in a media statement Saturday.

With the January-April period considered as "low season", the carrier expects an even better performance for the rest of the year," he said.

Last year, Garuda's losses stood at Rp 298.3 billion, narrowing the Rp 688.5 billion booked in 2005.

Pujobroto attributed the profit mostly to an increase in its load factor and number of passengers from the same period last year.

Garuda's load factor rose seven percent from 69 percent, while the number of passengers rose by five percent from 2.684 million in the January-April period last year.

Of the total 28 domestic routes the carrier served during the period, only four experienced losses, the statement said.

As shareholders, the government is considering selling a stake in the carrier, partly to help improve its performance, as part of its privatization program this year.

Garuda has been reportedly in talks with several interested domestic and international investors.

Garuda today boasts 49 aircraft, including a Boeing 737-400 that arrived last week.

Its long-term development plan includes an ordered 25 Boeing 737NGs and 10 Boeing 787 Dreamliners which are expected to join the carrier in 2009, the statement said.