MAS reduces quarterly loss
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Malaysia Airlines (MAS) achieved a significant improvement in its financial performance in the second quarter of 2013, but still fell to a three-month net loss.
The national carrier posted a net loss of MYR176 million (US$53.4m) for the quarter ending 30 June 2013, compared to MYR349m in the same period last year. This was achieved following an improved operational performance, with traffic rising 29% to 4.2m passengers and average cabin load factors jumping to a record high of 80%. This allowed the airline’s operating profit to rise to MYR8m, compared to an operating loss of MYR102m in Q2 2012.
“We are pleased that we have been able to bring in an operating profit in Q2 this year. Previously in 2012, we only saw an operating profit in Q3 and Q4. The strong push to fill our aircraft, optimise our asset utilisation and preserve shareholder value is gaining good momentum,” said MAS Group CEO, Ahmad Jauhari Yahya.
“The operating statistics of capacity, traffic, seat loads show strong growth compared to last year. With more new aircraft, we are carrying an average of 10,000 more passengers daily. We are expanding our network, increasing frequencies, and are gaining market share.”
Group revenue stood at MYR3.7 billion for the quarter, while expenditure totalled MYR3.8bn. And despite the fact that the price of jet fuel has come down US$10 per barrel year-on-year, fuel still accounted for 37% of the group’s total expenditure.
“We are making good progress to pare down our losses with the many initiatives to drive revenue, manage costs and improve productivity. We remain on track with our business plan to turnaround our group and build sustainable profit by end 2014,” Yahya added.
Following the rationalisation plan put into effect at the end of 2011, MAS has recently started expanding its network. The national carrier has already relaunched flights to Dubai this year, and plans to expand to Darwin and Kochi in the coming weeks.
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