Up 40 Percent, Garuda Records Revenue of IDR 46.7 Trillion in 2023

JAKARTA - PT Garuda Indonesia (Persero) Tbk (GIAA) recorded positive performance last year. Where revenue throughout 2023 was recorded at 2.94 billion United States (US) or IDR 46.74 trillion (assuming an exchange rate of IDR 15,897 per dollar).

Realized income throughout 2023 grew by around 40 percent compared to the previous year which was recorded at 2.1 billion US dollars or IDR 33.4 trillion.

Garuda also recorded a profit of 251.9 million US dollars or the equivalent of IDR 4 trillion in 2023. This profit decreased significantly compared to 2022 which reached 3.74 billion US dollars.

Meanwhile, Garuda's business income in 2023 will be driven by scheduled flight revenue which increased 41 percent annually or year on year (yoy) to 2.37 billion US dollars or IDR 37.7 trillion from the previous 1.68 billion US dollars or IDR 26.72 trillion.

This increase is in line with the movement of people using air transportation in the post-pandemic phase which continues to move closer to the pre-pandemic situation.

Meanwhile, scheduled passenger flights grew 52 percent from the previous year to 2.21 billion US dollars or the equivalent of IDR 35.15 trillion.

In line with scheduled flights, non-scheduled flight revenues were also recorded to have grown by 65 percent or US$288.03 million, equivalent to IDR 4.6 trillion.

In detail, Hajj flight revenue in 2023 will contribute a significant increase of up to 145 percent to 235.17 million US dollars or the equivalent of IDR 37.4 trillion compared to the previous year, namely 92.48 million US dollars or the equivalent of IDR 1.5 trillion. Then, other income also increased 15 percent from 2022 performance to 270.58 million US dollars, equivalent to IDR 4.3 trillion.

Garuda Indonesia President Director Irfaniaputra explained that throughout 2023, the Garuda Indonesia Group succeeded in recording operational performance through growth in the number of passenger transportation of up to 34 percent, reaching 19,970,024 passengers compared to 14,848,195 passengers in the previous period.

"In this achievement, Garuda Indonesia succeeded in carrying 8,291,094 passengers and Citilink 11,678,930 passengers," said Irfan, quoted from the official statement received by VOI, in Jakarta, Tuesday, April 2.

Furthermore, Garuda Indonesia also recorded other net income of 344.79 million US dollars, one of which was contributed by the implementation of reverse impairment of non-financial assets with a value of 198 million US dollars.

"The implementation of this accounting treatment has of course been carried out carefully and prudently by involving the Public Appraisal Services Office (KJPP) and through audit procedures from the public accounting firm appointed by the company," he said.

Apart from implementing the reversal of the decline in the value of non-financial assets, in terms of book profit bookkeeping, a profit was also recorded from the withdrawal of bonds worth 63.88 million US dollars which was carried out in December 2023.

Irfan said this was done through a partial buyback of the 2022 New Bonds where the difference in the recorded value and the amount paid was recorded as a profit on the bond buyback.

"The corporate action of repurchasing some of the bonds is part of the process of fulfilling restructuring obligations, where in this case the majority of Debt Securities and Sukuk holders are Garuda creditors who are following the Postponement of Debt Payment Obligations (PKPU) stages," he said.

The debt restructuring steps that began at the end of 2021, continued Irfan, Garuda Indonesia was able to reduce the value of its debt by up to 50 percent from the previous 10.9 billion US dollars or IDR 173.4 trillion to 4.79 billion US dollars or IDR 76.2 trillion.

Irfan also said that until now the company continues to fulfill its debt repayment obligations through a number of schemes, including making gradual repayment through operational cash flow. Then, convert the debt into New Equity, New Debt Securities, Local Debt Claims and New Sukuk.

Then, convert long-term debt for bank creditors, state-owned companies and subsidiaries, and pay off part of the new debt securities and new sukuk through a tender offer.

"The ongoing recovery process will take a long time amidst various challenges in the future that need to be faced strategically," explained Irfan.