Garuda GIAA Shares Soar Immediately After Shedding FCA "Shackles"

Jakarta, CNBC Indonesia - Shares of PT Garuda Indonesia Tbk (GIAA) have soared after successfully exiting the special monitoring board (FCA). Over three consecutive days, GIAA shares have skyrocketed. Most recently, at yesterday’s close on Thursday (26/3/2026), the aviation issuer’s shares jumped more than 15% to Rp84 per share. That gain was actually tempered compared to the session I close yesterday, which had surged around 23% to around Rp90 per share. On a weekly basis, GIAA shares have rocketed 20%. For context, GIAA shares had previously entered FCA due to negative equity. Finally, that negative equity has turned positive, recorded for performance up to 2025. Thus, the FCA tag has been removed. This improvement was primarily supported by financial restructuring steps and additional capital from the government through BPI Danantara, amounting to around Rp23.7 trillion. That capital injection strengthens GIAA’s capital structure while boosting its previously deeply pressured equity position. Additionally, balance sheet improvements came from reduced liabilities through debt restructuring, as well as various corporate actions such as converting loans to equity and adjusting aircraft lease recording schemes. The combination of these factors has made the difference between assets and liabilities positive again, although GIAA’s equity remains relatively thin. This means that while the FCA status has been lifted, its fundamental condition still needs close monitoring, as renewed large losses could pressure equity once more. For the record, GIAA’s performance throughout last year still booked a current year loss attributable to the parent entity’s owners of US$322.48 million or around Rp5.4 trillion. This loss widened compared to 2024, which was recorded at US$72.7 million or around Rp1.1 trillion. On the operational side, Garuda’s business revenue throughout last year was recorded at US$3.21 billion, down from US$3.41 billion the previous year. Meanwhile, total operating expenses reached US$3.1 billion, with additional other operating expenses of US$468.21 million, resulting in a pre-tax loss of around US$354.34 million in 2025. As of 31 December 2025, Garuda Indonesia’s total assets were recorded at US$7.43 billion, with liabilities of US$7.33 billion. The difference leaves the company’s equity at only around US$91.91 million, still very thin despite being positive again. On the cash flow side, Garuda recorded net cash from operating activities of US$468.37 million throughout 2025. The cash and cash equivalents position at year-end was recorded at US$943.40 million. Overall, exiting FCA due to positive equity is already a positive step for GIAA. However, this is still an initial step, as equity must grow with positive profits. The challenges ahead remain long to return fundamentals to the right track. Therefore, we should also be wary if this rapid rise triggers profit-taking from investors, especially if there are long-term holders who will seize the opportunity to exit first.