Garuda Indonesia loss widens to US$323 million as scheduled airline revenue slips

Funding constraints have left nearly 40% of its fleet grounded for maintenance, limiting flight operations

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Published Wed, Mar 18, 2026 · 06:29 PM

Garuda Indonesia's expenses have risen, with maintenance and repair costs jumping 23%. PHOTO: REUTERS

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[JAKARTA] Garuda Indonesia posted a wider net loss in 2025, as its revenue from scheduled airline services weakened and costs in some areas rose.

The flag carrier’s net loss widened to US$323 million from US$72.7 million for the previous year, its financial report said; revenue fell around 6 per cent to US$3.2 billion.

The drop in scheduled airline revenue came as funding constraints left nearly 40 per cent of its fleet grounded for maintenance, limiting flight operations.

At the same time, some expenses also rose, with maintenance and repair costs jumping 23 per cent and the company recording a foreign-exchange loss.

That leaves Garuda in a fragile position, just as airlines globally are bracing for higher fuel bills linked to the war in Iran.

Rising jet-fuel prices are already pushing carriers to adjust fares and capacity, adding pressure on earnings.

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For Garuda, which is still reporting losses despite the US$1.4 billion capital injection in 2025 from Indonesia’s sovereign wealth fund Danantara, the added cost could slow its turnaround and raise questions about the strength of its balance sheet.

Its recovery also carries broader economic implications for Indonesia, South-east Asia’s largest economy.

The 77-year-old carrier remains a critical link in an archipelago of more than 17,000 islands. It is expected to play a role in trade ties with the US through planned aircraft purchases.