MAS losses narrow in 2012
Malaysia Airlines (MAS) reduced its losses considerably in 2012, following a major cost-saving programme.
For the 12-months to 31 December 2012, the Kuala Lumpur-based national carrier posted a net loss of MYR433 million (US$140m) – 82% better than the MYR2.52 billion net loss it recorded in 2011. MAS also posted its second consecutive quarterly profit, with net gains of MYR51m for the fourth quarter of the year – the best three-month result since the launch of the airline’s transformation plan at the end of 2011.
“The massive swing… shows that our business plan is working. We continue to gain traction in multiple initiatives that focus on increasing revenue and managing costs. The results are very encouraging for our team who has worked hard throughout the year”, said Ahmad Jauhari Yahya, Group CEO at MAS.
As part of this business plan, MAS reduced its available seat capacity by 6% in 2012, cutting unprofitable long-haul routes to destinations including Rome, Johannesburg, Buenos Aires and Dubai. The airline said this led to a 13% reduction in expenditure. Fuel costs, which accounted for 38% of expenditure, fell 9% to MYR5.33bn for the 12-month period.
MAS also took delivery of its first four Airbus A380s last year as it looks to replenish its fleet with new, more fuel-efficient aircraft. Along with the A380s, MAS received seven new Boeing 737-800s and seven A330-300s. New aircraft will continue arriving until 2017.
“When we began the year 2012 by announcing our business plan, many were sceptical on our team’s ability to make a change and succeed,” said Yahya. “The business environment continues to be very dynamic and challenging. Going forward, we will need to work even harder to ensure we keep up this strong momentum to deliver sustainable profitability.”