Garuda Indonesia Q1 2023 Loss Narrows; Revenues Increase
DALLAS – Flag carrier Garuda Indonesia (GA) narrowed its losses in Q1 2023 as travel demand increased, leading to a rise in revenue.
The airline reported a pre-tax loss of US$131m for the first quarter ending on March 31, compared to a loss of US$257m in the same period last year. It also reported a reduced net loss of US$110m, compared to a net loss of US$225m in Q1 2022.
During Q1, Garuda experienced a significant increase in revenue as travel demand picked up, resulting in a decrease in pre-tax loss. Passenger travel revenue doubled year on year, contributing to a 72% rise to US$603m.
However, the expenses for the quarter rose by 15% year on year to US$605m, driven by increased costs related to flight operations due to an increase in flying activity.
As of the end of March, the airline had US$428m in cash and cash equivalents, lower than the US$522m at the beginning of the year but considerably higher than last year.
Restructuring Continues
Garuda Indonesia’s restructuring efforts are proceeding rapidly after receiving approval in 2022. The airline faced a series of lawsuits related to aircraft leases in the past few months, but it emphasized that these lawsuits would not hinder its restructuring progress.
Speaking in January, GA CEO Ifran Setiaputra said that he was optimistic about GA’s recovery, saying, “With an increasingly solid foundation of business performance that is also supported by an increasingly lean and adaptive cost structure…we are optimistic that Garuda can maximize the momentum in reviving business performance.”
The Indonesian national carrier has a fleet of 73 aircraft and operates around 600 daily flights to 11 countries as of May 2023.
Feature Image: Roland Rimoczi/Airways
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