PT Garuda Indonesia, the country’s flag carrier, jumped the most in almost six months in Jakarta trading after posting 2012 profit that beat analyst estimates.
The stock surged 6.3 percent to 680 rupiah as of 11:17 a.m. local time, poised for the steepest gain since Oct. 1. It was the third most-active stock in the Jakarta Composite Index, which gained 1 percent, poised to close at a record. Trading in the shares was more than eight times its three-month daily average, according to data compiled by Bloomberg.
The state-owned airline said net income rose to $110.6 million from $$63.9 million a year earlier, according to a statement published in Bisnis Indonesia today. That compares with the $103.5-million median estimate of eight analysts surveyed by Bloomberg. Garuda benefited from rising demand at home and is less exposed to Europe’s economic slowdown, according to PT Bahana Securities.
“Garuda is a completely different animal than most airlines because most of its revenues are from the domestic market,” Harry Su, head of research at Bahana Securities said by phone today. “Other airlines are suffering from the slowdown in Europe whereas Garuda has very minimal routes to Europe.”
The earnings statement didn’t provide reasons for the gain in profits. Shares of Garuda have risen 3 percent this year, compared with a 13 percent surge in the Jakarta Composite.