Garuda announced the first-quarter net profits in response to the decisions of the Finance Ministry, the Financial Service Authority (OJK), and State Audit Board (BPK) and at the request of the Indonesia Stock Exchange (BEI) calling for the airline company to again report its 2018 financial statement (restatement), Garuda Indonesia Finance and Risk Management Director Fuad Rizal noted in a written statement released on Friday.
For its part, Garuda Indonesia, on Friday, disseminated information to the public on its announcement of its 2018 financial restatement and first-quarter 2019 financial statement as part of its commitment to implementing all the decisions, he remarked.
"The restatement of the profit and loss report for the book year 2018 and the financial statement in the first quarter of 2018 is a follow up to the regulator's decision concerning the company's financial performance. In the restatement of financial report, we have established correspondence with the OJK and other stakeholders to ensure that we have complied with the rules and principles," he stated.
Rizal noted that through the restatement of the financial report, no ratios were violated, and the restatement of the financial report has received unmodified opinion.
In line with the restatement of the financial report, Garuda Indonesia has witnessed steady improvement in its performance. In the first quarter of 2019, it posted net profits of $19.7 million after suffering $64.27 million in losses in the previous quarter.
With positive growth in the first quarter of 2019, Garuda is optimistic of its performance continuing to grow positively in future, he stated.
The first-quarter profits were driven by scheduled flight services that contributed $924.90 million, up 11.6 percent, as compared to $828.49 million during the corresponding period last year.
Garuda Indonesia also witnessed its other operating income rising significantly by 27.5 percent to $171.8 million.