Jakarta. Irfan Setiaputra, the CEO of national carrier Garuda Indonesia, said on Thursday that the continued hikes in airfares are driven by factors beyond the company’s control.

He noted that the government-imposed air tariff cap has not been raised for years.

"Although the airfares paid by passengers have increased, this is due to factors outside the airline’s policies, such as airport taxes. Aviation fuel costs are also significantly higher now compared to 2019, and exchange rate differences further exacerbate the situation,” Irfan said after his meeting with B-Universe Media Holdings Executive Chairman Enggartiasto Lukita at eL Building in South Jakarta.

These factors, he added, have become "pressing issues" that significantly reduce the company’s profit margin.

“We continuously raise the issue of the ceiling tariff and will keep doing so because it is crucial for us. While we understand the government’s considerations in setting the tariff cap, we need a higher ceiling tariff to ensure our survival," Irfan said.

Enggartiasto praised Garuda for its quality service and on-time performance, saying the airline deserves its status as the standard-bearer in the Indonesian civil aviation industry.

“As a media organization, we highly appreciate Garuda for its quality service and remarkable on-time performance,” Enggartiasto said.

“Although there has not yet been an official confirmation from the government, I can proudly say that Garuda deserves its status as the national flag carrier,” the former trade minister added.

Enggartiasto also noted that Garuda still has room for improvement, particularly in supporting the government’s connectivity push by serving flights to remote areas under government assignments. However, he emphasized that the government must provide subsidies for Garuda to fulfill these public service obligations.

“In my opinion, the tariff cap should be raised to allow some flexibility so that Garuda can maintain its status as a premium airline without compromising service quality,” Enggartiasto said.

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