Jakarta. Garuda Indonesia Group posted a 13.2% increase in consolidated revenue to $2.71 billion (Rp 49.3 trillion) in the first nine months of 2026, as higher fuel costs continued to weigh on the airline’s financial recovery.

The state-owned airline group’s revenue rose by $316.4 million from the same period last year, supported by scheduled flight services, stronger non-aviation businesses, and an expansion in operational capacity.

However, fuel expenses climbed 42.9% year-on-year, adding $309.8 million to the group’s costs as global energy market volatility and geopolitical tensions in the Middle East pushed up aviation fuel prices.

Total operating expenses increased 15.7%, outpacing revenue growth. Despite the pressure, Garuda Indonesia Group recorded operating profit of $97.2 million, while its consolidated net loss narrowed 3% to $179.3 million.

The results suggest that revenue growth and cost controls are beginning to support the group’s recovery, although high fuel expenses remain a major obstacle to restoring sustained profitability.

Scheduled flight services remained the largest contributor to revenue growth, increasing 12.6% or $233.2 million. Revenue from unscheduled flights rose 2.1%, adding $6.3 million.

Non-aviation revenue grew more rapidly, climbing 31.3% to $322.8 million, an increase of $77 million from a year earlier. Operating expenses excluding fuel rose just 3.1%, well below the group’s revenue growth rate.

Garuda Indonesia President Director Thomas Oentoro said the results reflected progress in the company’s business transformation, particularly efforts to improve productivity and expand contributions from businesses across the group.

“Sustained growth requires a stronger aviation business alongside greater contributions from the group’s wider business ecosystem,” Thomas said in a statement.

He added that support from state investment agency Danantara, the group’s shareholder, would help improve productivity, maximize the economic value of assets and strengthen cooperation among its business units.

Non-Aviation Businesses Expand

The group’s diversification strategy is intended to reduce its reliance on passenger aviation and unlock commercial opportunities across its broader operations.

Revenue from aircraft maintenance services provided by GMF AeroAsia to external customers rose 42.4%, while revenue from travel agency services increased 76.1%, the company said.

Garuda Indonesia Group is seeking to expand these businesses alongside its core airline operations as part of efforts to strengthen its financial resilience.

Fleet Recovery Supports Passenger Growth

The group also reported progress in restoring its operational fleet, helping it increase flight activity and improve service reliability.

By September 2026, the group had 106 serviceable aircraft, comprising 64 operated by Garuda Indonesia and 42 by low-cost carrier Citilink. The total was 24 aircraft higher than the 82 recorded a year earlier.

Passenger traffic increased to 16.7 million in the first nine months of 2026, up from 15.6 million in the same period last year. Garuda Indonesia carried around 7.7 million passengers, while Citilink served approximately 8.9 million.

The group operated 117,868 flights, a 7.9% increase from 109,259 flights a year earlier.

On-time performance improved to 92.01%, compared with 86.15% in the same period of 2025, representing a gain of 5.86 percentage points.

Thomas said fleet recovery needed to be accompanied by higher aircraft utilization and more efficient route planning to ensure that additional capacity translated into sustainable business gains.

“Adding capacity alone is not enough. Each aircraft must be operated more productively, and every route must contribute to a more efficient flight network,” he said.

Focus Shifts to Sustainable Profitability

Garuda Indonesia Group plans to continue improving fleet utilization, optimizing its flight network, expanding contributions from businesses across the group and managing costs and assets more efficiently.

While revenue growth and stronger operational performance provide a foundation for its transformation, the company faces the challenge of turning increased activity into more consistent financial improvements.

Thomas said the group would focus on maintaining its operational momentum while improving its financial health and passenger experience.

The longer-term objective, he said, is to strengthen Garuda Indonesia’s competitiveness and financial resilience while restoring its position as Indonesia’s flag carrier and building a globally competitive airline group.

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