Garuda Indonesia reported a net loss of $318 million in 2025 while losing its 5-Star Skytrax rating, reflecting broader structural pressures in Indonesia's aviation sector.
Analysts say nearly all Indonesian airlines face financial strain due to high domestic fuel prices, fleet limitations from global supply chain disruptions, and price-sensitive markets. About 43 of Garuda's aircraft underwent maintenance simultaneously in 2025, creating a double financial burden with rising costs and declining revenue.
The Russia-Ukraine war disrupted titanium supplies, causing severe raw material constraints. Domestic fare regulations cap ticket prices while fuel costs rise, creating additional pressure. The airline operates as a majority state-owned enterprise under sovereign wealth fund Danantara.
CEO Wamildan Tsani was replaced by Glenny H. Kahuripan in October 2025. Experts warn the crisis threatens connectivity for Indonesia's 17,000 islands, where many regions depend entirely on air transport. The airline's subsidiary Citilink showed positive results in early 2026, suggesting potential recovery indicators.