PT. Garuda Indonesia (Persero) (GIAA) Q4 2024 earnings summary

Executive summary

• Operating revenue increased 16.34% year-over-year to USD 3.4 billion, driven by growth in scheduled, non-scheduled, and ancillary services, and supported by air travel recovery and debt restructuring.

• Net loss of USD 69.78 million, compared to net profit of USD 251.9 million in FY 2023, attributed to higher maintenance costs and normalized revenue structure.

• Passenger numbers rose 18.54% year-over-year to 23.67 million, with ASK up 20.67% and cargo volume up 34.27%.

• Strategic partnerships expanded, including new international routes, enhanced cooperation with Citilink, and a joint business agreement with Japan Airlines.

• Auditor issued an unqualified opinion but highlighted material uncertainty regarding going concern due to negative equity and liquidity risks.

Financial highlights

• Operating revenue: USD 3,416.5 million (up 16.34% YoY); operating expenses: USD 3.11 billion, up from USD 2.63 billion YoY.

• Net loss: USD 69.78 million, compared to net income of USD 251.9 million in FY 2023.

• EBITDA: USD 983 million for 2024, down 14.55% YoY.

• Cash from operating activities rose 163.81% YoY to USD 585.74 million; cash and cash equivalents at year-end: USD 219.17 million, down 24.38% YoY.

• Operating expenses increased 18.32% YoY, mainly due to higher maintenance (+38.89%) and fuel costs (+13.48%).

Outlook and guidance

• Strategic roadmap for 2025 focuses on profitability, market share growth, and sustainability, with management prioritizing domestic and select international routes, fleet optimization, and cost efficiency.

• Plans to add over 100 aircraft and open 20+ domestic and 10+ international routes by 2029.

• Additional equity, strategic partner funding, and early retirement of bonds and sukuk are planned.

• Continued emphasis on operational reliability, digital transformation, and customer engagement.

• Ongoing risks include fuel price and exchange rate volatility, government fare caps, and supply chain disruptions.