Business Round-Up
MAS does it hard in 2013
March 1st 2014
Malaysia Airlines (MAS), which will cancel its last service to the U.S. – Kuala Lumpur - Los Angeles – in April, has announced a fiscal year 1.17 billion ringgit (US$355 million) loss, compared with a 432.6 million ringgit loss for the previous 12 months. Read More » At the same time, it is being reported widely that the Malaysian flag carrier is considering ordering up to 100 new aircraft to fend off competition and introduce more fuel efficient airliners into its fleet.
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MAS said revenue rose 9.9%, which produced a 35.7% year-on-year increase in operating profit, but it was not enough to rescue MAS’s bottom line. MAS Group CEO, Ahmad Jauhari Yahya, told media: “the full-year performance of MAS in making a bigger loss in 2013 compared with 2012 demonstrates the challenges brought by intensifying competition that in turn leads to lower yields for all players. It makes having to focus on major structural cost reviews and business efficiency at MAS even more urgent.” In 2013, MAS traffic increased by 27.2%, and capacity expanded by 17.4%. Load factor was up by 6.3% to 81%.
