Garuda Indonesia's Losses Balloon to Rp 23.1 Trillion in Q3 2021

PT Garuda Indonesia (Persero) Tbk reported a net loss of US$1.66 billion, or approximately Rp23.1 trillion (using an exchange rate of Rp14,442/US$), in the third quarter of 2021. This figure is significantly higher than the US$1.09 billion loss reported in the same period of the previous year.

According to the company's financial report, the state-owned airline recorded revenue of US$939.02 million in the first nine months of this year, a 16.9% decrease from US$1.13 billion in the same period last year. Scheduled flights contributed the most to revenue, at US$732.85 million. Unscheduled flight revenue increased by 27.6% to US$59.87 million from US$46.92 million. Other revenue decreased by 16% to US$146.29 million from US$174.55 million.

In terms of expenses, operating expenses decreased by 11.6% to US$1.98 billion from US$2.24 billion. The largest expenses were flight operating expenses at US$1.11 billion, maintenance and repair expenses at US$446.07 million, and general and administrative expenses at US$135.6 million.

Other expenses included airport charges of US$120.68 million, ticketing, sales, and promotion expenses of US$66.71 million, passenger service expenses of US$64.21 million, hotel operating expenses of US$16.42 million, transportation operating expenses of US$11 million, and network operating expenses of US$6.03 million.

Garuda Indonesia's loss is the largest in the last five years. This is attributed to operational disruptions and a significant increase in the company's debt.