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Jakarta Post

Airlines resume operations in state of loss amid COVID-19

  • Riza Roidila Mufti

    The Jakarta Post

Jakarta   /   Sat, May 23 2020   /  01:41 am

National airlines are grappling with losses due to low passenger demand and physical distancing requirements, despite getting the government’s green-light to operate during the COVID-19 pandemic.

While large-scale social restrictions (PSBB) remain in force in some regions and the central government has banned the traditional mudik (exodus), the Transportation Ministry has allowed public transportation operations to resume, including air transportation services, starting May 6.

The move, seen by many as an effort to set the economy in motion amid the pandemic, has had a limited impact, as airlines continue to struggle with financial woes and low demand from passengers.

“National airlines are flying in a state of loss because [aircraft] can only be filled up to 50 percent of their capacity to follow the social distancing procedure,” Indonesian National Air Carrie...