Garuda Indonesia's Losses Balloon to Rp 13 Trillion in the First Half of 2021

PT Garuda Indonesia (Persero) Tbk reported losses exceeding Rp 13 trillion (approximately US$ 898.66 million at an exchange rate of Rp 14,496/US$) in the first half of 2021. This significant loss resulted from a sharp decline in revenue due to community activity restrictions imposed during the COVID-19 pandemic.

The state-owned airline's losses increased by 26.29% compared to the first half of 2020, marking its deepest loss to date. Revenue plummeted by 24.04% to US$ 696.8 million in the first half of 2021, while operating expenses decreased by only 16% to US$ 1.38 billion. Furthermore, financial expenses rose by 44.77% to US$ 293.53 million.

These substantial losses caused a 6.26% decrease in Garuda's assets to US$ 10.11 billion in the first half of 2021, while its liabilities increased by 1.8% to US$ 12.96 billion. Consequently, the company's equity became negative at US$ 2.85 billion, a 46.59% worsening compared to the same period in the previous year. This negative equity indicates that the company's assets are insufficient to cover its higher debts.

Due to its poor financial performance, the Indonesia Stock Exchange (BEI) suspended Garuda's stock trading on June 17, 2021. At that time, the GIAA stock price was Rp 220, a 44.78% decrease year-to-date (YTD) from its position at the end of 2020.

The Indonesian government holds a majority stake in Garuda, owning 60.54% of its shares. PT Trans Airways owns 28.26%, while commissioners and directors hold 0.0002%, and the remaining 11.2% is held by the public.