Garuda Indonesia was $723 million in the red for the six months ended 30 June, having taken a near-60% hit to operating revenues.
Operating revenues came in at $917 million, compared with $2.2 billion in the year-ago period, as revenues from scheduled services declined by 60%.
On the other hand, revenues from non-scheduled services nearly quadrupled to $21.5 million, though this accounts for just over 2% of operating revenues in the most recent period.
Alongside a 22% decline in operating expenses to $1.6 billion, the company posted a $726 million operating loss, versus a $87 million operating profit and a $23.9 million net profit in the first half of 2019.
As at 30 June, the company had $165 million in cash and cash equivalents, down from $299 million at 31 December 2019.
Short-term loans were valued at $817 million, compared to $985 million at the start of the period, while long-term loans increased from $143 million to $195 million over the same period. Most of these were extended by what the company terms related parties, defined as other state-owned entities, banks with shareholders common to Garuda, or Indonesia’s finance ministry and its subsidiaries.
Following the three-year postponement of the June maturity of its $500 million sukuk, the carrier’s total outstanding bonds payable stands at $491 million on 30 June, an amount that includes a $9.4 million deferred transaction cost. Garuda says it considers this a current liability, as it has yet to receive several waiver approvals from various banks.
The airline also disclosed that two of its lessors took legal action after it failed to make payment on aircraft leases.
On 27 March, Helice Leasing successfully applied to the Dutch courts to seize collateral for funds in Garuda’s account in Amsterdam.
Later, French authorities on 29 May granted Helice’s request to seize the guarantee amounts from the carrier’s account, in relation to aircraft lease payments not made.
Garuda says: “Until now, the company has not received a lawsuit related to the claim and the company is in [the] commercial negotiation stage with Helice Leasing SAS.”
Separately, AerCap filed a lawsuit in London regarding Garuda’s failure to service aircraft leases. The trial is currently being held in London, says the airline without going into details.
It adds: “Currently, the company is in commercial discussion with AerCap to agree on a contract restructuring.”