Garuda Indonesia is planning a share sale to address worsening financial conditions. Just months after a $1.4 billion rescue by sovereign wealth fund Danantara, surging fuel costs have wiped out the airline's remaining equity. The carrier plans to issue up to 124.4 billion new shares as part of a 2025-2029 restructuring plan.
Danantara Asset Management will contribute a 65.8% stake in the aircraft-maintenance unit PT Garuda Maintenance Facility Aero Asia rather than a cash injection. The state-owned carrier posted a $120.7 million loss in the first half of 2026, narrowing from $147.9 million a year earlier as revenue rose 16% to $1.80 billion. Its jet-fuel bill surged 44% to about $678 million.
The loss pushed Garuda's consolidated equity to a deficit of $52.2 million from a $44.4 million surplus at the end of 2025. The upcoming capital raising highlights a constraint: with Danantara's participation coming in the form of GMFI shares rather than additional cash, raising funds will be largely dependent on other shareholders. The airline will ask shareholders to approve the plan on Nov. 6.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing