Garuda Indonesia reported a significant widening of its net loss in 2025, reaching US$323 million, compared to US$72.7 million in the previous year. The airline’s revenue declined around 6% to US$3.2 billion, reflecting a weakened performance in scheduled airline services.
The financial challenges were exacerbated by operational constraints, with nearly 40% of its fleet grounded for maintenance due to funding limitations. This grounding limited flight operations and contributed to the revenue decline. Additionally, the airline faced increased expenses, with maintenance and repair costs surging by 23%, and foreign-exchange losses impacting its financial position.
Despite receiving a US$1.4 billion capital infusion from Indonesia’s sovereign wealth fund Danantara in 2025, Garuda remains fragile, and these added costs threaten to slow its recovery efforts. The airline’s strategic importance to Indonesia’s economy and its role in trade ties through upcoming aircraft purchases remain pivotal, but the current financial strain underscores the need for further reforms and support.
Even with these difficulties, Garuda Indonesia posted positive equity in 2025, ending a five-year capital deficit. However, it continues to face economic headwinds, including rising fuel prices globally linked to geopolitical tensions, which may put additional pressure on future earnings. The airline’s situation highlights broader industry challenges amid rising operational costs and constrained funding.
