Garuda posts heavy loss

Garuda Indonesia posted a significant loss for the third quarter of the year, as the depreciation of the Indonesian rupiah hit the airline.

Garuda suffered a US$206m loss in Q3 2014
Garuda suffered a US$206m loss in Q3 2014

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.

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