News
Malaysian carriers report interim results
June 3rd 2016
In its quarterly progress update, Kuala Lumpur-based flag carrier, Malaysia Airlines Berhad (MAB), said it was making good progress on its restructuring and turnaround plan. Read More » Specifically, the Christoph Mueller-led airline noted a 23.4% yield improvement to 0.23 ringgit ($0.6), after it shed 32.9% in operating costs during the first quarter due to the lower fuel price and a 40% drop in staff costs following large-scale terminations. MAB’s revenues declined 21.7% during the period, although this comes on the back of a 30.2% cut in ASKs, following the retirement of its entire B777-200ER fleet, as well as several B737-800s. The carrier’s load factor through to March 31 remained a low 68.9%, but Mueller said this was now “trending upward.”
Nevertheless, MAB cautioned it might still post a potential full-year loss.
The picture looks quite different at budget competitor AirAsia Berhad. The Malaysian unit this week announced a sharply improved 877 million ringgit ($222 million) first-quarter net profit on 31% revenue gains. The LCC noted a 17% growth in passenger numbers during the quarter ended March 31 on a 12% capacity increase, resulting in a significant 10% year-on-year load factor improvement to 85%.
“The positive momentum we have seen for our Malaysian operations has continued well into the current quarter. Our improved RASK proved that low fares stimulate the market,” said AirAsia Berhad CEO, Aireen Omar.
