Garuda Indonesia's Financial Performance Affected by Maintenance Program

Profit Declines 29.65% Year-on-Year

PT Garuda Indonesia (Persero) Tbk reported a net profit of US$37.93 million (approximately Rp632.03 billion) for the period, representing a 29.65% year-on-year decline. The significant drop in profitability was primarily attributed to an extensive aircraft maintenance program currently being undertaken by the airline.

Revenue Impact and Operational Adjustments

The maintenance program resulted in a 10.53% year-on-year decrease in revenue to US$842.16 million (approximately Rp14.03 trillion). According to Thomas Sugiarto Oentoro, Garuda's Deputy CEO, the maintenance activities temporarily reduced the airline's production capacity, affecting both passenger and cargo volumes. This operational adjustment directly impacted the company's revenue performance during the period.

Management's Perspective on Performance

Thomas Sugiarto Oentoro explained during the Rapat Dengar Pendapat (RDP) with Komisi VI DPR RI that the maintenance program was the primary factor behind the financial performance decline. He stated, "Overall, total revenue decreased by 10.5% year-on-year, mainly due to the maintenance program that we are currently conducting." The airline is implementing this program to maintain and enhance its fleet's operational reliability and safety standards.

Market Context and Future Outlook

The Indonesian aviation market remains challenging due to various factors including economic conditions and regulatory requirements. Garuda's current maintenance program, while impacting short-term financial performance, is expected to yield long-term benefits through improved operational efficiency and customer satisfaction. The airline's strategic decision to undertake comprehensive maintenance reflects its commitment to maintaining high service standards in the competitive aviation industry.