Indonesia’s flag carrier Garuda has revised its financial results for 2018 after accounting errors were found in its year-end accounts.
In its now revised financial statement from last year, the airline said it had made a net loss of $175 million on revenues of $4.17 billion in the fiscal year, this is against a previously reported net profit of $5 million on $4.37 billion of sales.
Other income, bar operating income which was unaffected, was reduced from $279 million to $39 million.
Indonesia’s financial regulator (OJK) and stock exchange have ordered Garuda Indonesia to “repair and restate” its annual accounts – this has in-turn sent the airline’s shares tumbling 7.6%, its lowest level since January.
The news comes just weeks after its two biggest private shareholders alleged it had misrepresented a $240 million transaction.
OJK has ordered Garuda Indonesia to fix unspecified errors in its 2018 annual accounts and submit a corrected version within 14 days. It has subsequently fined each of the airline’s directors Rp100m ($7,083).
A letter was published saying they had taken issue with the way the airline had forward-booked earnings from a deal with a technology provider in October 2018, saying it should have shown an additional $240 million loss.
The allegations were denied at the time by the airline’s chief financial officer Fuad Rizal. Garuda posted $5 million net profit on $4.37 billion of revenues in its 2018 annual report.
Garuda said it is optimistic this momentum will continue in the second and third quarters of this year.