News
Garuda Indonesia slumps deeper into the red
December 1st 2021
Garuda Indonesia has reported a net loss of US$1.7 billion for the nine months to September 30, a deterioration from a net loss of US$1.1 billion in the prior corresponding period. Read More » Revenue fell 17.5%, to US$939 million, Garuda said in a regulatory filing to the Indonesia stock exchange. The company said COVID-19 had caused a "major adverse impact" on its operations and liquidity. In particular, the airline has not been able to meet its financial obligations to banks, significant vendors such as fuel suppliers and airport operators, and aircraft lessors. “The group’s inability to meet obligations to lessors has resulted in the grounding of certain of its leased aircrafts," Garuda said. “Various borrowing agreements of the group have financial ratio covenants the group could not meet. When the group cannot meet these covenants, the borrowings will be immediately repayable if requested by the lenders." Garuda was conducting a comprehensive financial and operational restructuring. Its transformation plan, known as the Garuda Indonesia’s New Business Plan, aims to attract new funding resources, ensure the effectiveness of the restructuring process and gain more support from shareholders, board of commissioners, directors and creditors.
