GMF AeroAsia flags up to 50% revenue loss from pandemic
Indonesian MRO GMF AeroAsia is anticipating a revenue loss of between 25 to 50% for the quarter ended 31 March, as it outlines the impact the coronavirus outbreak has had on its operations.
The MRO arm of Garuda Indonesia says that it expects a 75% year-on-year fall in net profit for the period.
It adds that the outbreak has affected line maintenance work both inside and outside of Indonesia because of reduced flight activity. GMF has also had to cut back on repair and overhaul work, as part of pandemic prevention measures.
It also disclosed that the pandemic will “have an impact on fulfilling…principal debt obligations”, but did not elaborate. GMF will be releasing its first-quarter financial results this month.
The MRO outlined measures it has put in place to mitigate the outbreak’s impact. These include prioritising business segments with better margins and liquidity; increasing its market share overseas; as well as imposing cost efficiency and productivity measures throughout the company.
It is also negotiating with vendors, partners and creditors on terms of payment and price adjustments.
GMF reported a full-year profit for 2019 of $15 million, a 47.1% decline year on year, on the back of ballooning expenses.