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Garuda Posts Loss for 2004

Fuel and Higher Operating Costs Cited as Cause for Red Ink Report.

(8/27/2005) Indonesia's national carrier Garuda Indonesia posted its first net loss in three years in 2004, losing Rp. 811.3 billion (approximately US$83 million). The Airline managed to post a modest net income of Rp. 2.81 billion (approximately US$287,000) in 2003.

As reported by Bloomberg News, the national carrier posted its loss for 2004 despite managing to significantly improve its overall sales figures for the year by nearly 21%.

Fuel costs reportedly rose in 2004 from 30% to 35% of total operating expenses for the Airline with total operating costs increasing 25% over 2003.

According to Bloomberg, the Indonesian national carrier may suffer operating losses of between US$10 - $20 million as the result of surging fuel costs, despite recent increases in fares and fuel surcharges applied on most domestic and international routes flown by the Airline.