Jakarta – Shares of PT Garuda Indonesia (Persero) Tbk (GIAA) experienced a significant surge in trading this morning, Thursday, March 26th, briefly approaching the Auto Reject Atas (ARA) limit. The unexpected jump in Garuda’s stock price comes after a period of financial difficulty for the national flag carrier, raising questions about the factors driving investor confidence.
According to data from RTI Business at 9:35 AM Western Indonesian Time (WIB), Garuda shares rose 21.92% to Rp 89 per share. At the opening of trading, the stock even reached a high of Rp 96 per share. The volume of Garuda shares traded this morning was substantial, totaling 769.84 million shares with a transaction value of Rp 71.80 billion. A total of 18,510 transactions were recorded since the start of trading, indicating heightened investor activity surrounding the airline’s stock.
The rally follows a recent announcement that Garuda Indonesia has been removed from the special monitoring board, or Full Call Auction (FCA), a status it held due to previously reported negative equity. The airline’s financial reports for 2025 demonstrate total equity of US$91.91 million, or approximately Rp 1.5 trillion as of December 31, 2025. However, despite this improvement, Garuda’s losses continued to grow throughout the year.
Garuda’s Losses Reach Rp 5 Trillion
Garuda Indonesia reported a net loss of US$319.39 million, equivalent to around Rp 5.39 trillion, for the full year 2025. This represents a significant increase compared to the US$69.77 million loss recorded in the same period the previous year. The widening losses underscore the ongoing challenges facing the airline despite restructuring efforts and attempts to improve its financial position.
Throughout 2025, Garuda Indonesia generated total revenue of US$3.21 billion, or approximately Rp 54.22 trillion, down from US$3.41 billion (Rp 57.60 trillion) in 2024. Revenue from scheduled flights contributed US$2.14 billion, while unscheduled flights brought in US$340.87 million. Other revenue sources totaled US$361.05. The decline in overall revenue highlights the impact of factors such as fluctuating fuel prices and ongoing competition within the aviation industry.
Total operating expenses for Garuda Indonesia reached US$3.10 billion in 2025. The largest component of these expenses was flight operational costs, amounting to US$1.54 billion. Maintenance and repair costs also contributed significantly, totaling US$661.36 million. Airport fees and passenger service charges accounted for US$249.14 million and US$216.35 million respectively, further illustrating the substantial costs associated with running a full-service airline.
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What’s Behind the Sudden Investor Interest?
The reasons behind the sudden surge in Garuda’s share price are complex and likely a combination of factors. The removal from the FCA list is a key element, signaling a perceived improvement in the company’s financial health. This removal allows for more normal trading activity and potentially attracts a wider range of investors. However, the substantial losses reported for 2025 raise questions about the sustainability of this positive momentum.
Analysts suggest that the market may be reacting to broader optimism surrounding the recovery of the aviation sector in Southeast Asia. As travel restrictions ease and passenger demand increases, airlines across the region are beginning to see improvements in their financial performance. Garuda Indonesia, as a key player in the Indonesian market, could be benefiting from this regional trend. However, the airline still faces significant challenges, including a large debt burden and intense competition from low-cost carriers.
The Indonesian government, as the majority shareholder in Garuda Indonesia, has been actively involved in restructuring the airline’s debt and implementing operational improvements. These efforts, while ongoing, may be contributing to a renewed sense of confidence among investors. The government’s commitment to supporting Garuda is seen as a crucial factor in the airline’s long-term viability.
The recent positive movement in Garuda’s stock price also comes amid a broader rally in the Indonesian stock market (IHSG). The IHSG has been performing well in recent weeks, driven by positive economic data and increased foreign investment. This overall market sentiment could be contributing to the increased demand for Garuda shares.
While the immediate catalyst for the price increase remains somewhat unclear, the combination of factors – removal from the FCA, regional aviation recovery, government support, and broader market optimism – appears to be driving investor interest in Garuda Indonesia. However, potential investors should carefully consider the airline’s ongoing financial challenges and the competitive landscape before making any investment decisions.
Looking ahead, Garuda Indonesia is expected to continue its restructuring efforts and focus on improving its operational efficiency. The airline’s next financial report, due in the coming months, will provide further insight into its progress and future outlook. Investors will be closely watching key metrics such as revenue growth, cost control, and debt reduction to assess the sustainability of the recent stock price gains. The airline’s ability to navigate these challenges will be crucial to its long-term success.
(ahi/ara)
This article provides information for general knowledge and informational purposes only, and does not constitute investment advice. It is essential to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.
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