Jakarta. National flag carrier Garuda Indonesia (GIAA) revealed on Tuesday that it has utilized Rp 5.74 trillion of the Rp 7.7 trillion ($513.8 million) it earned from a rights offering last year, with the majority of the funds being allocated for fleet maintenance. 

The rights issue in December provided Garuda with Rp 7.79 trillion in proceeds before being deducted Rp 21.5 billion in costs.

According to Garuda's CEO, Irfan Setiaputra, the spending during the first half of this year included Rp 1.65 trillion for maintenance and restoration, Rp 810.77 billion for reserved maintenance costs, Rp 1.73 trillion for fuel expenses, Rp 900 billion for aircraft leasing, Rp 370 billion for a restructuring program, and Rp 275.88 billion for working capital.

The remaining Rp 2 trillion of the proceeds has been deposited with a 4 percent interest rate, Irfan said in a public filing.

Garuda's fortunes appear to be improving, as it is projected to earn Rp 3.4 trillion from transporting more than 100,000 Indonesian Hajj pilgrims to Saudi Arabia over the last two months. 

This development signals a recovery for the airline after the Saudi government increased Indonesia's pilgrimage quota to pre-pandemic levels.