Jakarta. Shareholders of national flag carrier Garuda Indonesia (IDX: GIAA) have approved the next phase of the state-owned airline’s restructuring plan and endorsed a board reshuffle to accelerate financial recovery and expansion, as the carrier looks to strengthen its balance sheet and capture post-pandemic travel demand.

At an extraordinary general meeting on June 30, shareholders representing 74.29 percent of Garuda’s shares voted in favor of continuing the restructuring program, which will prioritize improving equity while restoring the airline’s fleet, expanding its route network, and boosting passenger traffic. The company plans to gradually increase its fleet to around 120 aircraft, up from about 100 currently, including its budget carrier Citilink, and to add at least 100 new routes by 2029.

Garuda will also focus on strengthening its aviation ecosystem, pushing digitalization, and enhancing customer experience, President Director Wamildan Tsani Panjaitan said in a statement. The restructuring builds on the airline’s initial recovery program carried out between 2021 and 2023, which focused on managing debt, restructuring its fleet composition, and controlling costs.

“The approval marks a turning point for Garuda Indonesia and lays the foundation for us to become a healthier, competitive, world-class airline,” Wamildan said, adding that government and shareholder support will help the company deliver improved performance.

Board Reshuffle
The meeting also approved a board reshuffle to support Garuda’s transformation plans as competition in the aviation industry grows. Shareholders appointed Eksitarino Irianto as Director of Human Capital and Corporate Service, Reza Aulia Hakim as Commercial Director, Dani Haikal Irawan as Operations Director, Mukhtaris as Technical Director, and Mawardi Yahya as Independent Commissioner. 

Following the changes, Garuda’s board now includes President Director Wamildan Tsani Panjaitan alongside the new directors, while the board of commissioners is led by Fadjar Prasetyo. Wamildan said the appointments reflect Garuda’s commitment to leadership continuity and the use of internal talent to drive its long-term transformation.

Operational Performance
Garuda Indonesia reported continued financial improvement in the first quarter of 2025, driven by a 92.9 percent surge in charter flight revenue compared to the same period last year. This growth, supported by rising demand for Umrah charter services, resulted in charter revenue of $37.96 million, with charter passenger traffic more than doubling to 24,618 across 69 flights.

The airline’s consolidated operating revenue rose 1.6 percent year-on-year to $723.56 million as of March 31, supported by higher passenger and cargo volumes. Garuda Indonesia Group carried a total of 5.12 million passengers in the quarter, including 2.64 million on Garuda Indonesia and 2.48 million on Citilink, with seat load factors improving to 78.8 percent, up five percentage points from the previous year.

Garuda also reported a significant improvement in cash flow, with net cash from operating activities rising 87.2 percent to $162.27 million. The airline narrowed its net loss by 12.5 percent to $75.93 million from $86.82 million a year earlier, although financial expenses of $124.57 million, largely tied to long-term restructuring commitments, continued to weigh on its bottom line.