Jakarta. Indonesia’s Sovereign Wealth Fund Danantara said Garuda Indonesia has begun to show early signs of recovery in early 2026, following a late-2025 capital injection aimed at stabilizing the struggling national carrier.

Danantara Chief Operating Officer and head of the SOEs Regulatory Agency, Dony Oskaria, said the financial pressures reflected in Garuda’s 2025 results largely predated the intervention.

“The problems recorded today reflect 2025 revenues. Our intervention only took place at the end of 2025. The impact will start to be visible in early 2026, particularly in the first and second quarters,” Dony said in Jakarta on Sunday.

He explained that one of the main factors weighing on Garuda’s performance last year was the high number of grounded aircraft, which continued to incur significant leasing costs despite not being operational.

In addition, the airline faced lengthy maintenance, repair, and overhaul (MRO) processes, further limiting fleet availability.

“Before Danantara’s intervention, the number of grounded aircraft was quite high. Now it has started to decline, with more planes returning to operation, although it has not yet reached 100%,” he said.

Despite the gradual improvement, Dony stressed that the turnaround remains a work in progress.

“We still have a lot of homework to do. A capital injection alone is not enough. We also need business transformation,” he added.

As an early indication of recovery, Garuda’s low-cost subsidiary Citilink has already posted positive results in the first quarter of 2026.

Garuda Indonesia, however, still booked a net loss of $319.39 million for the full year of 2025.