PT Garuda Indonesia on Friday filed for chapter 15 bankruptcy protection in the Southern District of New York court, as the debt-laden carrier tries to secure its future profitability, Bloomberg News reported. The submission comes as the airline, having completed a court-supervised debt restructuring in Indonesia to halve reduce its debt load, tries to capitalize on the rebound in international travel. Garuda’s total debt now amounts to roughly $5.1 billion, President Director Irfan Setiaputra told parliament in Jakarta on Monday. Reviving the national airline is a top priority for the Indonesian government, because the country relies on air transport for connectivity and to support its tourism industry. The airline could post net income of around $400 million next year and gradually increases its earnings to $647 million in 2026, according to a projection by Indonesia’s finance ministry this month.
