Garuda Indonesia's Revenue Increases 48.32 Percent In The Third Quarter Of 2023

JAKARTA - PT Garuda Indonesia (Persero) Tbk (GIAA) revenue recorded company operating revenues of US$2.23 billion or equivalent to Rp35.62 trillion (assuming an exchange rate of Rp15,951 per US dollar) in the third quarter of 2023.

This achievement grew 48.32 percent compared to last year.

Garuda Indonesia's operating revenue growth resulted from scheduled flights which increased 49.02 percent year on year (yoy) to 1.72 billion US dollars, unscheduled flights earned revenue of 274.25 million US dollars, and other revenues reached 234.91 million US dollars.

Garuda Indonesia also posted an increase in operating expenses. During January to September 2023, the company's operating expenses reached 1.99 billion US dollars, an increase of 7.14 percent.

After being accumulated with various other incomes and expenses, Garuda suffered a net loss of 72.38 million US dollars or equivalent to Rp1.15 trillion in the third quarter of 2023.

The loss was reversed from a net profit achieved of USD 3.7 billion.

President Director of Garuda Indonesia Irfan Setiaputra revealed, after successfully completing debt restructuring at the end of 2022, Garuda Indonesia continues to accelerate various transformative measures to improve performance.

"With financial performance indicators getting better, including the EBITDA position and the company's cash flow ratio, we hope that the performance recovery outlook will gradually continue to improve consistently," he said in an official statement, Wednesday, November 1.

Towards the end of 2023, Irfan said, Garuda Indonesia is optimistic that the fundamentals of business performance will be more solid after the restructuring will continue on the track.

"In the midst of the recovery phase of the post-pandemic aviation sector, of course we realize that performance recovery steps need to be taken prudently by paying attention to shifting community behavior in mobilizing after the pandemic is declared over," he said.

In addition, he continued, the issue of supply chain in the midst of the massive restoration movement of the fleet of various global airlines is also one of its own challenges in Garuda's efforts to maximize the availability of production equipment.

Irfan said the move would be aligned with various strategic initiatives such as increasing production capacity, where since mid-2023 Garuda Indonesia has begun to realize the delivery process of five narrow body fleets in stages.

"On the other hand, we will also continue to optimize the flight network through increasing flight frequency on various routes with positive performance," he said.

Through optimizing the flight network, he continued, Garuda Indonesia managed to record an increase in the average flight traffic of 5 thousand flights per month in the third quarter of this year.

"This is also reflected in the fleet utilization rate of 9:12 per day in the September 2023 period for the entire flight operation," explained Irfan.