JAKARTA – PT Garuda Indonesia (Persero) Tbk (GIAA) recorded a loss of Rp1.2 trillion in the first quarter of 2025, surpassing the full-year loss of 2024, which stood at Rp1.15 trillion.

On a year-on-year basis, however, GIAA’s revenue in the first quarter grew by 1.63% to USD 72.3 million.

Despite this, the operating expenses of the Indonesian state-owned airline rose by 2.2% to USD 718.3 million. Meanwhile, its financial expenses increased by 3.91% to USD 124.5 million.

As previously reported by IDNFinancials.com, GIAA acknowledged that it has been facing performance challenges early this year. Fifteen aircrafts have been grounded for maintenance, including several operated by Citilink Indonesia.

A report by Bloomberg stated that the repair process itself has become a challenge for GIAA, as parts suppliers and maintenance service providers are demanding upfront payments.

More recently, Bloomberg also reported that GIAA is currently in talks with Danantara to secure a capital injection, citing sources familiar with the discussions.

However, the talks are said to be in the early stages, and the amount and timing of the potential capital injection remain uncertain.

Neither GIAA nor Danantara have clarified the matter or issued an official statement.

As of the end of this year, GIAA's debt position has reached USD 1.4 billion, exceeding its total assets. Several analysts have noted that part of the 76-year-old airline’s debt needs to be written off in order to secure external funding. (KR/LM)