Garuda Indonesia cuts net loss 23% as revenue surges 16% in H1 2026

Garuda Indonesia (GIAA), Indonesia's state-owned airline, reported a net loss of US$113 million in the first half of 2026, down 23.2% from US$147.1 million in the same period of 2025, as revenue grew 16% year-on-year to US$1.80 billion (IDR32.1 trillion). The improvement reflects recovery across multiple business segments and a significant capital injection from Danantara Asset Management.

Scheduled flights generated the largest share of revenue at US$1.31 billion, up 10.9% from the previous year, with passenger revenue increasing 11.5% to US$1.23 billion. Non-scheduled flights surged 32.5% to US$272.8 million, driven primarily by hajj transportation revenue which jumped 51.6% to US$232.2 million. Aircraft maintenance, repair and overhaul (MRO) services also expanded, rising 43.8% to US$87.4 million. Other revenue increased 32.2% to US$209.2 million. Operationally, earnings before interest and taxes (EBIT) reached positive US$74 million, up 12.7%, while EBITDA rose 5.8% to US$431.6 million.

Financial expenses declined 11.6% to US$222.4 million, a reduction linked to Danantara's IDR23.67 trillion (approximately US$1.3 billion) capital injection in December 2025. Following this investment, subsidiary Citilink repaid its restructured debt principal to state energy company Pertamina on 10 December 2025, cutting Pertamina-related finance costs from US$11.8 million to US$4.7 million. Total borrowings, including lease liabilities, bonds and bank loans, declined approximately 4% to US$3.76 billion by 30 June 2026. Negative equity improved significantly to US$52.2 million deficit from US$1.5 billion deficit a year earlier, while operating cash flow reached positive US$253.1 million with cash reserves of US$624.3 million.

Jet fuel costs presented a significant headwind, rising 43.6% year-on-year to US$677.6 million and representing 37.7% of total revenue, up from 30.5% in the first half of 2025. Garuda contained non-fuel operating expenses at US$1.07 billion, a 3.9% increase, reducing their share of revenue to 59.7% from 66.7%. Management attributed the fuel price spike to Middle East conflicts affecting global energy supplies, with the International Air Transport Association projecting 2026 average jet fuel prices at US$152 per barrel—a 70% year-on-year increase with a peak in April 2026.

Fleet capacity recovered to 104 operational aircraft by end-June 2026, with most planes returning to service after maintenance completion. This recovery supported the airline's revenue expansion and offset challenges from grounded aircraft, an issue previously flagged by Indonesian President Prabowo Subianto. Total company assets stood at US$7.37 billion as of 30 June 2026, down 3.25% from US$7.62 billion at year-end 2025. Domestically, 91.5% of revenue originated from domestic routes while 8.5% came from international operations.