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Garuda Indonesia posts US$387.8 million loss for first quarter
August 6th 2021
Indonesia's flag carrier has reported a net loss of US$387.8 million for the three months to March 31, a deterioration from a net loss of US$143.9 million in the same three months in 2020. Read More » Revenue fell 54%, to US$353.1 million, Garuda Indonesia's financial accounts show. "The COVID-19 pandemic, followed by travel restrictions, has caused a significant reduction in air travel and has had a major adverse impact on the group's operations and liquidity," Garuda said. "In particular, until the completion date of these consolidated financial statements, the Group has not been able to meet its financial obligations to the banks, significant vendors, such as PT Pertamina (Persero) for purchase of fuels, PT Angkasa Pura I (Persero) and PT Angkasa Pura II (Persero) as the airport operators and aircraft lessors." Garuda Indonesia CEO, Irfan Setiaputra, said recently the airline's recovery from the pandemic was expected to take up to four years. The carrier is developing a management plan to improve its financial position, which includes negotiations with creditors and lessors, job cuts, fleet reductions and network changes.
