State-owned Garuda Indonesia has rushed out encouraging year-end profits figures in an apparent attempt to re-assure markets in the middle of the Indonesian economic crisis, but financial analysts remain sceptical of the claims.
The airline is claiming to have boosted its net profit to Rp191.5 billion ($22 million) against Rp3.9 billion in 1996. Revenue rose 10% to Rp4.5 trillion. It is unclear, however, from the brief financial information released by the airline, where the profits come from. The yield and cost figures released have led analysts to estimate that the airline turned in another loss of around Rp556 million at operating level.
One sceptical financial observer contrasts the speed of this year's Garuda profit announcement with the fact that the airline has, in the past, routinely delayed publishing its accounts for a year or more.
Source: Flight International
