Garuda Indonesia Slashes Losses by 45% as Passenger Surge Reaches 5.4 Million

JAKARTA, Investortrust.id — Garuda Indonesia is flying toward a narrower deficit as the Southeast Asian carrier successfully slashed its first-quarter net loss by nearly half, signaling that a grueling restructuring process is finally yielding financial altitude.

The national flag carrier reported a net loss of $41.62 million for the period ending March 31, a significant improvement from the $75.93 million loss posted during the same window last year. This recovery comes as the airline group—which includes low-cost subsidiary Citilink—saw a resurgence in travel demand across the Indonesian archipelago.

Garuda’s narrowing losses represent a critical litmus test for Indonesia's broader aviation sector. As the government pushes for more efficient state-owned enterprises, Garuda’s ability to stabilize its balance sheet while increasing flight frequency suggests a more sustainable path for the high-yield Jakarta-to-Singapore and domestic trunk routes.

Traffic Gains and Revenue Growth

The group transported 5.42 million passengers in the first three months of the year, representing a 6.76% jump from the 5.08 million passengers recorded in the previous year. Specifically, Garuda's mainline service carried 2.47 million people, while Citilink handled 2.94 million travelers.

This surge in activity pushed consolidated operating revenue up 5.36% to $762.35 million. The backbone of this growth remains scheduled flights, which generated $648.10 million in revenue, up more than 7% from the prior year.

Operational Discipline and Fleet Recovery

Beyond the balance sheet, the airline is sharpening its "on-time performance" (OTP), which reached 91.01% in the first quarter. This efficiency is supported by a fleet of 102 "serviceable" aircraft, a result of the company's aggressive "return to service" program aimed at meeting the post-pandemic capacity gap.

Garuda Indonesia President Director Glenny Kairupan emphasized that these results are a direct outcome of strengthening fundamental operations. "The growth in passenger traffic and the improvement in financial performance show that our transformation steps are showing gradual progress," Kairupan stated in an official release on Thursday, May 14. He added that the focus remains on maintaining operational discipline and service reliability to ensure the business grows in a healthy and sustainable manner.

A New Leadership for the Final Turnaround

The financial update coincided with a major leadership shakeup finalized during the Annual General Meeting of Shareholders on May 13. The company appointed Frans Dicky Tamara as Director of Human Capital & Corporate Service and Sugito Anjasmoro to the Board of Commissioners.

Kairupan described this management refresh as a vital part of "rebuilding fundamentals." He noted that the new lineup is expected to accelerate the "turnaround phase," ensuring the airline remains competitive as a national flag carrier while contributing to the nation’s economic recovery.