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The 1st Quarter of 2017 Garuda Indonesia Group Booked Operating Income of 909.5 Million US Dollars, Transport 8.4 Million Passengers.

Cengkareng, April 28, 2017 – Garuda Indonesia and its subsidiaries in the first quarter of 2017 booked operating revenues of 909.5 million US dollars. Garuda Indonesia Group also managed to record the growth of the number of passengers during the 1st quarter in 2017 to 8.4 million passengers.

This was revealed by President & CEO Garuda Indonesia Pahala N. Mansury when describing the financial and operational performance of the company in the first quarter 1 2017 at Garuda Indonesia Building, Kebon Sirih, Jakarta (28/4).

Throughout the first quarter of 2017, Garuda Indonesia recorded strong operational performance, with a passenger transport growth of 8.4 percent, with significant achievements in the international market sector with an increase in passenger growth by 26.1 percent compared to 1st quarter of 2016.

"Amid the achievement of the strong operational performance, the company's financial performance pressure is now become a challenge for us to continue to accelerate in order to create a sustainable profitability of the company," said Pahala.

"The world's airlines industry trend that has tended to decline over the last five years, as well as the weakening consumer demand of early this year, has a direct impact on the company's continued financial performance.

With the pressure of losses that tend to be progressive, a fundamental transformation of aspects of financial strategy and financial mitigation is needed. Although Garuda Indonesia recorded an increase in revenue of 6.2%, operating costs increased by 21.3%, causing the company to record a net loss of 99.1 million US dollars in the current year.

"Therefore, through the opportunity that given to us in the new management of Garuda Indonesia, we strive continuously to make overall improvement efforts related to the focus and efforts to improve financial performance significantly."

"The company's financial performance in the first quarter of 2017 (January - March) can be said to be far from the set targets, so there is a need for breakthroughs to produce sustainable and solid business growth."

Garuda Indonesia targets a significant increase in the company's financial performance over the next six months by implementing short-term financial strategy focusing on financial performance, operational excellence, and customer experience.

The strategy is implemented through the "5 Quick Wins Priority" program by maximizing fleet cost optimization, route optimization, reducing cost, enhancing value from subsidiary Citilink, and Enhance Revenue Management System.

Meanwhile, from the aspect of service, commitment in maintaining the quality of service and operational excellence will continue to be improved. With Garuda Indonesia market segmentation as a "full service" airline, the value of our services will continue to maximize, in particular by strengthening the concept of Indonesian Hospitality and the company's commercial digital service base.

Throughout the first quarter of 2017, Garuda Indonesia's production capacity increased 10.9 percent to 15.8 million from 14.3 million seats per kilometer in 2016. The seat load factor growth in 2017 was recorded at 72.5 percent, up 2.7 percent Compared to the same period in 2016.

Garuda Indonesia's air freight transport increased by 20.2 percent with total cargo transport by 108.4 thousand tons. While the company's market share for the domestic sector also increased to 39.2 percent compared to the same period in 2016 of 38.4 percent. While the international sector also states increase in market share of 27.7 percent compared to 2016 by 26 percent.

Meanwhile, the achievement of charter airline revenue also increased by 42.1 percent with total revenue of 1st quarter reached 23.8 million US dollars compared to the year 2016 of 16.7 million US dollars.

In 2016, Garuda Indonesia Group also expanded its flight capacity as part of the fleet revitalization development program by bringing in 17 aircraft, consisting of four ATR 72-600 aircraft, four A330-300s, one B777-300ER and eight A330 -200. Thus, by the end of 2016, Garuda Indonesia Group operates 196 aircraft with an average age of aircraft reaching 4.6 years.





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