Garuda Indonesia experienced an 11-fold increase in net profits in 2008 as compared to 2007. Net profits in 2008 for the Indonesian flag carrier totaled Rp. 669 billion (US$59.7 million) while in 2007 only Rp. 60 billion (US$5.4 million) in profits were booked.
In 2008 Garuda carried 10.1 million paying passengers, an increase of 9.8% over 2007 when 9.2 million passengers flew with the airline.
Quoted in Kompas, the airline's CEO, Emirsyah Satar, analyzed Garuda's good fortune, saying: "in the current global financial crisis, airline passengers are decreasing more on long haul routes. Passenger loads on domestic and regional routes continue to grow."
Satar also attributed his airlines profitability on fuel saving programs, an increasingly younger fleet of aircraft, electronic procurement systems and other management efficiencies now being introduced.
An aviation analyst, Dudi Sudibyo, also credits Garuda's surge in profitability to the sale of the corporate headquarter building in downtown Jakarta, suggesting that the vastly improved profitability is not completely due to operational issues and may not be sustainable over the long term.
Garuda operates 50 Boeing 737-NG, 10 Boeing 777-300ER and is scheduled to receive a new Boeing 777-800NG and Airbus 330 in June of 2009.
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