Garuda Indonesia reported on Wednesday a jump in third-quarter profit reaching $59.9 million for the July-September 2017 period. The amount is three times bigger than the one for the previous corresponding period.
The profit is due to aggressive costs, made by the carrier in an attempt to offset higher fuel price, and the revenue growth by 11% to $1.22 billion was assisted by significant increase in hajj pilgrimage.
Part of the cost reduction plan of the carrier, in addition to reducing loss-making routes and boosting sales from digital channels, are the negotiations with manufacturers to defer almost all its aircraft deliveries in order to improve its financial position.
The biggest current order of Garuda Indonesia is for 50 Boeing 737 MAX family aircraft. The airline needs to take delivery of one of the aircraft this year, since it is already in production, but negotiates with Boeing to postpone the delivery of the rest by two to three years.
The carrier is renegotiating 30 contracts with aircraft leasing companies and manufacturers.