Garuda Indonesia posted a significant loss for the third quarter of the year, as the depreciation of the Indonesian rupiah hit the airline.
The national carrier slumped to a loss of US$206.4 million for the three months ending 30 September 2014, as Indonesia’s currency issues caused the company’s expenses – especially fuel costs – to spiral.
As a result, Garuda said it was undertaking a series of moves to curb spending.
“Garuda [will] postpone the opening of new international flight services [and] stop services to destinations,” Garuda Indonesia’s president Emirsyah Satar said in a statement. He added that the airline would put new aircraft deliveries on hold.
These measures are expected to reduce Garuda’s capital expenditure by US$54m.
Satar added that the company would look to expand its operations through partnerships with its SkyTeam alliance partners.