Garuda Swings To First Half Profit

Garuda Indonesia swung to a net profit of USD$27.7 million in the first half of 2015 from a loss a year earlier.

The USD$27.7 million profit was for the six months ended June and compared to a restated USD$203 million loss a year ago, it said in an announcement published by newspaper Bisnis Indonesia.

Garuda made a profit of USD$16.3 million for the April-June quarter, higher than the USD$11.4 million profit it booked in the previous quarter.

The airline's performance was lifted by cost reductions as well as fuel and currency hedging, Garuda said.

Garuda has done a "network restructuring" by focusing on more profitable routes, chief executive Arif Wibowo told reporters.

It had also hedged 45 percent of its fuel needs and is aiming to gradually raise that level to at least 50 percent this year, compared to about 10 percent last year, Wibowo said.

Garuda has signed an agreement worth around USD$600 million with aircraft engine supplier GE Aviation to equip the 50 Boeing 737 MAX 8s it has on order.