Garuda’s revenue impacted by Covid-19 and cancelled Hajj flights

Garuda has shed more light on the impact of the coronavirus pandemic on its operations, with the cancellation of Hajj pilgrimage flights coming on top of the wider collapse in the air travel market. The pandemic has led to lower demand for air travel, a reduction in flight frequencies, and the need to implement additional health protocols for every operating flight, the state-owned carrier said in an 8 June stock exchange disclosure. It also notes that the decision of Indonesia’s Ministry of Religious Affairs on 2 June not to permit Indonesians to perform the Hajj this year due to the pandemic; Hajj flights typically contribute around 10% of its total revenue. The airline made the comments in response to a query by the Indonesia Stock Exchange, regarding two reports by news site on Garuda’s current performance. Garuda’s CE Irfan Setiaputra reportedly said its revenue had declined “by nearly 90%,” with the airline grounding 70% of its fleet and load factors now below 50%. Meanwhile, Garuda is expected to take a Rp3.4t ($243m) revenue hit from the cancellation of Hajj flights for the 2020 season. Garuda is also listed as one of the four carriers appointed by the Ministry of Religious Affairs to operate Hajj flights this year, alongside its low-cost subsidiary Citilink, as well as Saudi carriers Flynas and Saudia.<br/>