Jakarta. National flag carrier Garuda Indonesia aims to expand its operating fleet to around 120 aircraft over the next five years, following a Rp 6.65 trillion ($407 million) shareholder loan from Indonesia’s sovereign wealth fund, Danantara Indonesia, the company announced Tuesday.

Garuda CEO Wamildan Tsani expressed confidence in the airline's long-term recovery and growth, describing the capital injection as a key milestone that will help restore operational and financial strength after years of turbulence.

“We are optimistic that Garuda can return to positive net profit. This marks a critical step toward optimizing our operations and enhancing performance,” Wamildan said in Jakarta.

The collaboration with Danantara will focus on improving operational efficiency, expanding route networks, and optimizing fleet utilization to support greater productivity. Wamildan added that the strategic plan was formulated through a comprehensive review process and aligns with good corporate governance standards, including transparency and accountability.

Garuda operated 144 aircraft prior to the COVID-19 pandemic, but that number dropped to fewer than 40 following a major debt restructuring in 2022. As air travel demand rebounded, the airline gradually rebuilt its fleet to 69 aircraft today, with an earlier stated goal of reaching 100 by the end of 2025.

Despite gradual improvements, Garuda remains under financial pressure. The airline posted a net loss of Rp 1.15 trillion in 2024, followed by an additional Rp 1.2 trillion loss in Q1 2025.

The Danantara-backed funding is expected to help accelerate Garuda's turnaround efforts, allowing the airline to regain its footing as a competitive player in the regional aviation market.