Garuda Indonesia Faces Three Pressures Due to US-Iran War

Managing Director of Finance at Danantara Asset Management, Sahala Situmorang, explained the impact of the war in the Middle East on the business of the state-owned airline Garuda Indonesia. Sahala stated that the negative effects of the war in the Middle East are most felt by the transportation and logistics sectors.

In Garuda’s case, Sahala said, the effects of the war are felt through three aspects. These are the increase in fuel prices or avtur, the weakening of the rupiah exchange rate against the US dollar, and air traffic. “However, specifically for Garuda, we are focusing on their cash flow, because that has a very significant impact on them,” he said at the Fitch on Indonesia 2026 event in Jakarta on Thursday, 23 April 2026.

Sahala said that Danantara routinely communicates with Garuda Indonesia to discuss the impact of the war on the company’s business. They also discuss how Danantara can assist from the financing side and how other SOEs can help the issuer with the stock code GIAA.

Based on the unaudited consolidated interim financial report, Garuda Indonesia recorded a net loss for the current period in the first quarter of 2026 amounting to US$46.48 million or approximately Rp800.7 billion (exchange rate of Rp17,230 per US dollar). This loss narrowed compared to the first quarter of the previous year, which was recorded at US$76.49 million.

Garuda also booked operating revenue of US$762.35 million or approximately Rp13.1 trillion. This revenue increased compared to the same period last year, which was recorded at US$723.56 million.