Despite Increased Revenue, Garuda Indonesia Still Posts Rp1.14 Trillion Loss in Q3 2023

PT Garuda Indonesia Tbk reported a loss of US$72.06 million, or Rp1.14 trillion (assuming an exchange rate of Rp15,845 per US$), in the third quarter of 2023.

Compared to the same period last year (year-on-year/yoy), the net profit of this GIAA-coded issuer reached US$3.69 billion, or Rp58.57 trillion, in the third quarter of 2022. This represents a staggering 101.94% year-on-year drop in profit for the third quarter of 2023.

According to its financial statements, one factor contributing to the significant drop in net profit is the net exchange rate difference. In the third quarter of 2023, net exchange rate losses amounted to US$13.41 million, or Rp212.57 billion. In contrast, the third quarter of 2022 saw a substantial profit of US$103.64 million, or Rp1.64 trillion.

Furthermore, other net income in the third quarter of 2023 was a negative US$2.79 million, or Rp44.32 billion. This compares to US$279.16 million, or Rp4.42 trillion, in the same period last year.

In this quarter, GIAA also recorded no income from debt restructuring. In the third quarter of 2022, income from this source reached US$2.85 billion, or Rp45.23 trillion.

Despite this, the state-owned enterprise's revenue reached US$2.23 billion, or Rp35.38 trillion. This figure surged 48.31% (yoy) from the previous US$1.5 billion, or Rp23.85 trillion.

All revenue-generating segments in September 2023 showed positive growth. Firstly, scheduled flights totaled US$1.72 billion, or Rp27.31 trillion, up from US$1.15 billion, or Rp18.33 trillion, in September 2022.

Secondly, non-scheduled flights recorded positive revenue of US$274.25 million, or Rp4.34 trillion, in September 2023, an increase from US$162.79 million, or Rp2.57 trillion, in September 2022.

Thirdly, other revenue reached US$234 million, or Rp3.72 trillion, up from US$185.98 million, or Rp2.94 trillion, previously.

Garuda Indonesia's CEO, Irfan Setiaputra, stated that since mid-2023, the airline has gradually delivered five narrow-body aircraft. Simultaneously, flight network optimization will continue through increased flight frequencies on positive-performing routes.

"Through this flight network optimization, Garuda Indonesia has successfully recorded an increase in average flight traffic reaching 5,000 flights per month in the third quarter of this year," said Irfan in a written statement reported by Antara on Wednesday (1/11/2023).

(See also: Garuda Indonesia Still Lost Rp1.16 Trillion Until the First Half of 2023)