Garuda Indonesia Seeks Financing as Loss Widens
Garuda Indonesia reported a wider net loss as weaker scheduled-service revenue and higher costs strained its finances. Nearly 40% of its fleet was grounded for maintenance, limiting operations, while maintenance and repair costs climbed 23%. The airline ended 2025 with positive equity, but rising fuel bills pose a fresh risk to its turnaround.
For Indonesia, Garuda Indonesia’s financial health matters beyond the airline’s balance sheet: the carrier links communities across a vast island nation. Garuda Indonesia seeks financing as a wider net loss, weaker scheduled-service revenue and rising costs add pressure to its recovery.
The flag carrier reported a net loss of US$323 million last year, up from US$72.7 million in the previous year, according to its financial report. Revenue fell around 6% to US$3.22 billion.
Its operations were constrained by a shortage of available aircraft. Funding constraints left nearly 40% of the fleet grounded for maintenance, limiting flight operations as the airline’s revenue from scheduled services weakened.
The strain showed up in costs, too. Maintenance and repair expenses jumped 23%, and the company recorded a foreign exchange loss.
Those pressures leave Garuda facing a more difficult recovery as airlines prepare for higher fuel bills linked to the war in Iran. Rising jet fuel prices are already prompting carriers to adjust fares and capacity, adding further pressure on earnings, the source report said.
Fleet constraints complicate the recovery
For passengers and businesses that rely on air links, grounded aircraft can mean fewer available flights. The source report says the maintenance-related grounding limited Garuda’s operations, although it does not detail routes or passenger effects.
The financial strain also matters for Indonesia’s wider connectivity. Garuda remains a critical link across an archipelago of more than 17,000 islands, and its recovery has broader economic implications for Southeast Asia’s largest economy, according to the report.
Garuda is still reporting losses despite a US$1.4 billion capital injection last year from Indonesia’s sovereign wealth fund Danantara. The report says rising fuel costs could slow the turnaround and raise questions about the strength of the airline’s balance sheet.
There is one change in its financial position: Garuda posted positive equity in 2025, ending five years of a capital deficit. The airline is also expected to play a role in trade ties with the US through planned aircraft purchases, the report said.
The source report, published.com and carried, did not provide details of any new financing sought by Garuda. Its reported net loss for last year was US$323 million.
