PT. Garuda Indonesia (Persero) (GIAA) Q2 2024 earnings summary

Executive summary

• Achieved strong recovery in 2Q 2024 with 6.11 million passengers, up 34.99% year-over-year, and cargo volume of 53,326 tons, up 37.80% year-over-year.

• Revenue for the six months ended 30 June 2024 increased by 16% year-over-year, reaching USD 1.62 billion, driven by growth in scheduled and non-scheduled airline services and other business segments.

• EBITDA for the period was positive at USD 424 million, reflecting improved operational performance post-restructuring.

• Despite operational improvements, the Group reported a net loss of USD 100.4 million and continues to face material uncertainty regarding its ability to continue as a going concern due to negative equity and current liabilities exceeding current assets.

• Strategic initiatives included new in-flight services, upgraded amenities, enhanced ground handling, and new alliances and partnerships with global airlines.

Financial highlights

• Revenue passenger income reached $630.8 million in 2Q 2024, up 34.15% year-over-year.

• Operating revenues rose to USD 1.62 billion for the six months ended 30 June 2024, up from USD 1.37 billion year-over-year.

• Operating expenses increased to USD 1.53 billion, mainly due to higher fuel, maintenance, and depreciation costs.

• Passenger yield decreased 5.42% year-over-year to 8.35 USC; average fares stable at $103.27.

• CASK remained flat at 6.91 USC; CASK excluding fuel slightly decreased to 4.43 USC.

Outlook and guidance

• Plans for new lease agreements, additional aircraft, and further route optimization beyond 2024.

• The Group aims to increase its fleet to 159 aircraft by 2026 and continue operational and financial restructuring, including early retirement of bonds and sukuk.

• Focus on zero emission initiatives, continued synergy with Citilink, and ongoing management development.

• Risks to the outlook include fuel price volatility, exchange rate fluctuations, government-imposed fare caps, and supply chain disruptions.