Published on March 19, 2026, by Bloomberg Technoz
By Artha Adventy
Bloomberg Technoz, Jakarta – Despite a recent Rp23.67 trillion injection from Danantara, the financial performance of PT Garuda Indonesia Tbk (GIAA) remains under pressure.
As of the end of 2025, the state-owned airline recorded a loss totaling US$3.83 billion or about Rp64.3 trillion (US$1=Rp16,780).
Garuda received Rp23.67 trillion or about US$1.42 billion capital injection from Danantara on December 5, 2025.
The funds comprise the conversion of shareholder loans totaling Rp6.65 trillion and a capital injection of Rp17 trillion.
Despite receiving a substantial additional capital injection, GIAA’s deficit position increased compared to the previous year, which was US$3.50 billion or around Rp58.7 trillion.
Throughout 2025, the company recorded a net loss of US$319.39 million, or about Rp5.36 trillion, compared with a net loss of US$69.78 million in the previous year.
This performance pressure is consistent with declining revenue, with the scheduled airline segment down 8.30% year-on-year to US$2.51 billion.
GIAA President Director Glenny Kairupan explained that this performance issue was due to limited production capacity in the first half of 2025.
“A number of unserviceable aircraft are still awaiting scheduled maintenance,” said Glenny in a press release on Thursday (March 19, 2026).
Glenny added that the net loss position throughout last year was also influenced by exchange rate fluctuations and increased fixed costs in line with the fleet serviceability recovery program.
“Garuda Indonesia Group continues to maximize the number of serviceable aircraft by the end of 2025, bringing the number of aircraft to at least 99, up from approximately 84 as of June 2025,” he said.
The total number of unserviceable aircraft at the end of 2025 was 43 aircraft, which are currently undergoing maintenance.
Amidst the challenges of optimizing production capacity, passenger numbers were recorded at 21.2 million throughout 2025, a 10.5% decrease compared to the previous year.
Garuda Indonesia’s performance pressures in the 2025 financial year were also influenced by declining passenger yield, the weakening rupiah exchange rate, and challenges in the global aviation industry supply chain that impacted maintenance costs and processes.
Meanwhile, revenue from non-scheduled flights only increased slightly by 2.13% to US$340.88 million, which was not enough to offset the decline in the main segment.
On the other hand, GIAA’s operating expenses remained relatively stagnant, with flight operational expenses of US$1.54 billion, maintenance and repair expenses of US$661.36 million, airport expenses of US$249.14 million, and passenger service expenses of US$216.36 million.
From the balance sheet, GIAA’s total assets were recorded at US$7.43 billion, or approximately Rp125 trillion, in 2025.
Conversely, total liabilities reached US$7.33 billion, while the company’s equity was only US$91.91 million, or approximately Rp3.24 trillion.
Capital Strengthening
Through funding support from Danantara, GIAA recorded an improvement in its equity position, which turned positive to US$91.9 million as of December 31, 2025, from a negative position of US$1.35 billion the previous year.
Around Rp15 trillion, or 64% of the capital injection from Danantara, was allocated to settle Citilink’s obligations, while GIAA received Rp8.7 trillion for fleet maintenance needs.
Meanwhile, GIAA recorded cash and cash equivalents of US$943.4 million at the end of 2025, an increase compared to the previous year’s position of US$219.1 million.
“This increase also reflects the company’s improved liquidity, which is a crucial foundation for maintaining operational stability,” said Glenny.
Garuda Indonesia targets to operate 68 serviceable aircraft by the end of this year, while Citilink targets 50 serviceable aircraft.
“The optimization of existing serviceable aircraft in 2026 will be strengthened through the projected acceleration of several strategic fleet maintenance initiatives,” he said.
These initiatives include heavy maintenance airframe checks on the Boeing 737-800NG, Boeing 777-300ER, and Airbus A330 fleets.
In addition, the Company also conducts overhauls and shop visits on key components such as engines, Auxiliary Power Units (APUs), and landing gear to ensure optimal fleet performance.
(art/naw)