Still Destroyed, Garuda Indonesia's Loss Swells To Rp12.8 Trillion In Semester I 2021

Garuda Indonesia aircraft. (Photo: Wikimedia Commons)

JAKARTA - The losses experienced by PT Garuda Indonesia (Persero) Tbk increased in the first semester of 2021 compared to the same period last year. The value of the loss increased by 26.09 percent in the first semester of 2021.

Based on the company's financial statements, the national airline's net loss reached 898.65 million dollars, equivalent to Rp. 12.82 trillion (assuming an exchange rate of Rp. 14,275 per dollar). The value of the loss swelled from the previous US$712.72 million or equivalent to Rp10.17 trillion in the first six months of last year.

"The COVID-19 pandemic, followed by travel restrictions, has caused a significant reduction in air travel, and has had an adverse impact on the Group's operations and liquidity," the company wrote in its financial report posted on the Indonesia Stock Exchange information disclosure, quoted Tuesday, August 31.

The swelling loss of Garuda Indonesia in the first semester of 2021 is in line with the total operating income of US$696.8 million, or a decrease of 24.04 percent from the same period last year of US$917.28 million.

The majority of Garuda Indonesia's turnover still comes from scheduled flights with a total of 556.53 million US dollars or a drop of 25.82 percent from 750.25 million US dollars. Revenues from scheduled flights consist of passenger flights and cargo business.

In terms of passenger flights, Garuda Indonesia only recorded revenue of 375.29 million US dollars, a drop of 40.5 percent from 630.77 million US dollars. Even so, Garuda Indonesia was able to pocket revenue from the cargo and document transportation business worth 181.24 million US dollars, or skyrocketed to 51.69 percent from 119.48 million US dollars.

Another source of income for Garuda Indonesia comes from unscheduled flights (charter). The airline was able to record revenue of 41.63 million US dollars from charters or was able to grow significantly to 93.25 percent from 21.54 million US dollars.

Meanwhile, other businesses consisting of aircraft maintenance and repair, aviation-related services, facilities, catering services, and others experienced a decline. The total other revenue was 98.63 million US dollars, or dropped to 32.2 percent from 145.47 million US dollars.

Garuda's losses were also recorded to increase even though the company's operating expenses fell in the first half of 2021. In the first half of this year, the company's operating expenses were recorded at 1.38 billion US dollars. That figure is down from the previous 1.64 billion US dollars in the same period last year.

Garuda's operating expenses consist of flight operating expenses; maintenance and repair expenses; general and administrative expenses; airport load; passenger service burden; ticket, sales and promotion expenses; hotel operating expenses; transportation operational expenses; to the network operational load.