PT. Garuda Indonesia (Persero) (GIAA) Q2 2025 earnings summary

Executive summary

• Operating revenue for 1H 2025 was USD 1,548.2 million, down 4.48% year-over-year, mainly due to a strategic reduction in scheduled flight capacity for fleet maintenance, resulting in an 8.02% drop in passenger revenue.

• Interim consolidated financial statements for the six months ended June 30, 2025, were audited and received an unqualified opinion, with a material uncertainty related to going concern due to capital deficiency and current liabilities exceeding current assets by $737 million as of June 30, 2025.

• Net loss widened to USD 143 million from USD 100 million in 1H 2024, with negative equity at USD 1.49 billion.

• Positive operating cash flow of USD 303 million was generated, supporting ongoing business activities.

• Strategic support from Danantara Asset Management includes a USD 405 million standby fund for aircraft maintenance and restoration.

Financial highlights

• Scheduled airline service revenue fell 7.14% year-over-year to USD 1,184.1 million; non-scheduled revenue increased to USD 205.84 million (+15.66%).

• Operating expenses decreased 1.82% year-over-year to USD 1,504.7 million, with maintenance and overhaul expenses up 23.83% due to higher depreciation.

• EBITDA for 1H 2025 was USD 410.9 million, down 1.3% year-over-year; EBIT was USD 70.99 million, down 43.87%.

• Net loss for 1H 2025 was USD 142.84 million, a 42.34% increase in losses year-over-year.

• Total assets as of June 30, 2025, were $6.51 billion, with total liabilities of $8.01 billion and negative equity of $1.50 billion.

Outlook and guidance

• Aircraft under maintenance are expected to return to service in 4Q 2025, increasing capacity and supporting revenue growth.

• Management plans to rationalize the network, expand the fleet to up to 120 aircraft, optimize ancillary revenue, and enhance loyalty platforms.

• Financial strategies include capital increases, raising funds from strategic partners, and further corporate actions to strengthen capital structure.

• Negative equity is expected to decline as revenues recover in the second half of 2025.