(March 18): Flag carrier PT Garuda Indonesia posted a wider net loss last year as revenue from scheduled airline services weakened and costs in some areas rose.
Net loss widened to US$323 million from US$72.7 million in the previous year, according to its financial report, while revenue fell around 6% to US$3.22 billion.
The drop in scheduled airline revenue came as funding constraints left nearly 40% of its fleet grounded for maintenance, limiting flight operations. At the same time, some expenses also rose, with maintenance and repair costs jumping 23% and the company recording a foreign exchange loss.
That leaves Garuda in a fragile position just as airlines globally are bracing for higher fuel bills linked to the war in Iran. Rising jet fuel prices are already pushing carriers to adjust fares and capacity, adding pressure on earnings. For Garuda, which is still reporting losses despite last year’s US$1.4 billion capital injection from Indonesia’s sovereign wealth fund Danantara, the added cost could slow its turnaround and raise questions about the strength of its balance sheet.
Its recovery also carries broader economic implications for Indonesia, Southeast Asia’s largest economy. The 77-year-old carrier remains a critical link across an archipelago of more than 17,000 islands and is expected to play a role in trade ties with the US through planned aircraft purchases.
Even so, the company posted positive equity in 2025, ending five years of a capital deficit.
See also: Sound mind, sound body
Uploaded by Arion Yeow
