AP II raises its passenger movement target to 76.65 million
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - AP II naikkan target pergerakan penumpang dadi 76,65 juta
30 June 2023
Jakarta - PT Angkasa Pura/AP II (Persero) is increasing the passenger movement target at 20 of their managed airports this year to 76.65 million passengers along with the change of the Covid-19 pandemic status to an endemic. That number increased by 5% from the initial target of 73 million passengers.
“We hope that it will positively impact the national economy, which will stimulate the national banking sector. At the start of the year, we targeted passengers at 20 of AP II airports to cumulatively reach 73 million passengers in 2023. With the removal of the pandemic status, we increase the target,” AP II President Director Muhammad Awaluddin said in Jakarta this week.
Passenger composition in 2023 is 70% domestic route passengers and 30% international route passengers.
Awaluddin said that AP II with airlines would reactivate domestic routes that were closed during the pandemic and open new domestic routes.
“Domestic tourists play a large role in recovering national tourism. Hence, AP II with stakeholders, especially airlines, will strengthen the connectivity on domestic routes,” Awaluddin said.
On the other hand, the market share of PT Garuda Indonesia (Persero) Tbk shows an opportunity to accelerate growth to be more progressive, especially the growth of the domestic market share that is approaching 100% compared to the early period of the Covid-19 pandemic. In the third quarter of 2023, Garuda passengers are predicted to increase by up to 36.45% from the previous year.
“The interest of the people is continuously growing along with the growth momentum of the national tourism industry that has been continuously recovering since last year,” Irfan Setiaputra said to Investor Daily recently.
Besides that, Garuda estimates that the number of passengers until the third quarter of 2023 will surpass the number of passengers in 2022 that reached 5.5 million. The realisation is expected to grow 61.6% from the number of passengers in 2021.
Furthermore, with a fleet that has been continuously moving dynamically since the pandemic, Garuda’s positive outlook is represented by Garuda’s seat load factor (SLF) realisation in 2022 that reached 69.29%, which is 94.4% of the SLF realisation before the pandemic in 2019 that reached 74.01%.
Collectively, Garuda Indonesia and Citilink successfully logged an SLF realisation of 72.94% in 2022, which increased significantly from the SLF realisation in 2021 that only reached 43.42%. With that realisation, Garuda Indonesia Group’s SLF realisation in 2022 reached 98.2% of the SLF realisation in 2019 that reached 74.28%.
“We are optimistic about realising this thanks to the passenger load performance in 2023 that is increasingly promising,” he stated.
Regarding the largest issue faced by airlines during the recovery period, Irfan said that limited production equipment was still an issue for global aviation players, including Garuda Indonesia. However, in line with the massive expansion, production equipment optimisation is predicted to be more positive in 2023 and 2024.
Other issues include volatile fuel price, inflation, and various macroeconomic aspects.
“The geopolitical condition impacts the aviation industry,” he stated.
Besides that, Irfan continued that there were more challenges, especially for Garuda Indonesia as a full-service airline, such as maintaining service excellence amid the mobility activity normalisation momentum and the health protocol adjustments during the Covid-19 endemic transition period. The people’s behaviour has been shifting in the last three years since the pandemic.
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