PT. Garuda Indonesia (Persero) (GIAA) Q2 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2024 increased by 16% year-over-year, reaching USD 1.62 billion, driven by growth in scheduled and non-scheduled airline services and other business segments.

• The Group reported a net loss of USD 100.4 million for the period, compared to a net loss of USD 76.4 million for the same period in 2023.

• EBITDA for the period was positive at USD 424 million, reflecting improved operational performance post-restructuring.

• Despite operational improvements, the Group continues to face material uncertainty regarding its ability to continue as a going concern due to negative equity and current liabilities exceeding current assets.

Financial highlights

• Operating revenues rose to USD 1.62 billion for the six months ended 30 June 2024, up from USD 1.37 billion year-over-year.

• Operating expenses increased to USD 1.53 billion, up from USD 1.24 billion year-over-year, mainly due to higher fuel, maintenance, and depreciation costs.

• Net loss attributable to owners of the parent was USD 101.7 million, with a basic/diluted loss per share of USD 0.00111.

• Total assets as of 30 June 2024 were USD 6.55 billion, while total liabilities stood at USD 7.93 billion, resulting in negative equity of USD 1.39 billion.

• Cash and cash equivalents at period end were USD 229.1 million, down from USD 289.8 million at year-end 2023.

Outlook and guidance

• Management's business plan focuses on optimizing domestic and select international routes, fleet optimization, cost efficiency, and ancillary revenue growth.

• The Group aims to increase its fleet to 159 aircraft by 2026 and continue operational and financial restructuring, including early retirement of bonds and sukuk.

• Risks to the outlook include fuel price volatility, exchange rate fluctuations, government-imposed fare caps, and supply chain disruptions.