PT. Garuda Indonesia (Persero) (GIAA) Q3 2024 earnings summary

Executive summary

• Achieved significant operational recovery and implemented strategic initiatives for long-term growth and stability as of YTD October 2024.

• Revenue for the nine months ended 30 September 2024 increased 15% year-over-year to USD2.56 billion, driven by growth in scheduled and non-scheduled airline services and other business lines.

• Aircraft utilization increased by 7.4% to 9 hours 34 minutes per day, with fuel optimization saving $23 million, or 4.5% of total fuel costs.

• Despite operational improvements, the Group continues to face negative equity of USD1.41 billion and current liabilities exceeding current assets by USD619 million.

• Recognized as one of the World's Most Trustworthy Companies 2024 by Newsweek.

Financial highlights

• Operating revenue rose 16.12% year-over-year to $2,844.62 million for the 10 months ended October 2024.

• EBITDA increased 13.82% year-over-year to $780.34 million for the same period.

• Net income turned positive at $18.11 million, up from a loss of $82.86 million in the prior year period.

• Net loss attributable to owners of the parent was USD131.2 million, with basic/diluted loss per share of USD0.00497.

• Total assets stood at USD6.51 billion, while total liabilities were USD7.92 billion as of 30 September 2024.

Outlook and guidance

• Plans to execute new lease agreements, add aircraft, optimize routes, and strengthen synergy with Citilink.

• Management remains focused on domestic and select international routes, fleet optimization, and cost efficiency.

• Plans include further capital raising, early retirement of bonds and sukuk, and continued operational restructuring.

• Focus on sustainability programs and management development for future growth.

• Risks include fuel price and currency volatility, government fare policies, and supply chain disruptions.