JAKARTA ~ National carrier Garuda returned to profitability in the first half of this year as rising passenger numbers and higher air fares boosted sales revenue.

The carrier reported first-half net profit of Rp148 billion (US$15.9 million), reversing a year earlier loss of Rp361 billion. Sales rose to Rp5.8 trillion from Rp5.2 trillion previously.

The carrier said it carried 4.37 million passengers in the first half of the year, against 4.07 million, while its seat load factor rose six percentage points to 76 percent.

The airline has been facing fierce competition from regional and low-cost carriers and has been struggling to pay off its debts in recent years.

In 2006 its net loss narrowed to Rp197 billion from a loss of Rp688.47 billion the year before.