Core Business Strengthens, Garuda (GIAA) Recovery Still Tested by Financial Burdens

JAKARTA, KOMPAS.com — Improvements in the performance of PT Garuda Indonesia (Persero) Tbk (GIAA) in the first quarter of 2026 highlight a prominent pattern: the company’s recovery is largely supported by its core scheduled airline business, rather than non-operational factors.

Amid pressures from financial burdens and still-high liabilities, revenue from scheduled flights has become the primary driver sustaining Garuda’s business growth in the early part of the year.

Based on the interim consolidated financial report as of 31 March 2026, Garuda recorded business revenue of US$762.35 million or approximately Rp13.14 trillion (assuming an exchange rate of Rp17,240 per US dollar), up from US$723.56 million or approximately Rp12.48 trillion in the first quarter of 2025.

In nominal terms, revenue from this segment increased by around Rp765 billion.

The contribution from scheduled flights is also highly dominant, reaching about 85% of Garuda’s total business revenue in the first quarter of 2026.

This dominance indicates that Garuda’s performance recovery in the early part of the year is more supported by the strengthening of its core full-service airline business, rather than incidental revenue or non-operational items.

In the first quarter of 2026, that segment recorded revenue of US$24.98 million or approximately Rp430.66 billion, down from US$37.96 million or approximately Rp654.43 billion in the same period the previous year.

In nominal terms, there was a decline of more than Rp223 billion.

This weakening means that Garuda’s revenue increase is not driven by all business lines, but is more concentrated on scheduled services.

With this structure, Garuda’s performance improvement appears to be based on demand for regular air transport, which forms the main foundation of the company’s business model.

The revenue increase from the core business is accompanied by an improvement in the bottom line.

Garuda Indonesia’s loss for the period was recorded at US$41.62 million or approximately Rp717.5 billion, down from a loss of US$75.93 million or approximately Rp1.31 trillion in the first quarter of 2025.