Garuda Profit More Than Doubles

PT Garuda Indonesia, the national biggest airline, said net income more than doubled last year
after it carried more passengers.

The airline had a profit of 683 billion rupiah ($57 million), 115 percent more than a year earlier, the company said in a presentation today.

Garuda passenger numbers gained 9 percent to 10.02 million last year, bolstered by growth in Southeast Asia largest economy and tourist arrivals to island resorts such as Bali.

The profit-surge contrasts with that at carriers such as Singapore Airlines Ltd. and AirAsia Bhd., which are either reporting lower profits or turning to a loss.

Airlines worldwide lost as much as $8 billion last year following a larger-than-expected fourth-quarter decline prompted by the recession and fuel-hedging losses in the period, the
International Air Transport Association said yesterday.

The closely held airline also said its leasing eight Boeing Co. 737-800 aircraft from Dubai Aerospace Enterprise in a contract valued at an estimated $360 million. Dubai will take
over Garuda contract with Boeing to buy the aircraft, part of a 50-plane order, it said. The first aircraft will be delivered in June under a 10-year lease.

The state-owned airline may increase passenger numbers 20 percent this year, it said.