Malaysia Airlines yield improves 7pc in Q1

KUALA LUMPUR: Malaysia Airlines Bhd reported a year-onyear (y-o-y) yield improvement of 6.6 per cent in the first quarter ended March 31, despite stiff competition in both international and domestic sectors.

In a statement yesterday, Malaysia Airlines said revenue per available seat kilometre (RASK) had shown healthy growth of 3.5 per cent y-o-y, with overall total revenue also growing two per cent.

Malaysia Airlines saw yield improvements in both international and domestic sectors due to a concerted focus on the premium segments of business class seats and corporate sales.

This comes on the back of sustained RASK and yield improvements over the preceding quarters.

Though the quarter was overall positive, the second quarter is expected to be weaker and more challenging due to soft demand during Ramadan.

Malaysia Airlines group chief executive officer Captain Izham Ismail said its performance was on budget for the first quarter and its concerted focus on yield, which began in the second half of the previous year, continued to see results with the overall improvement in yield and RASK.

“I am heartened by the relatively encouraging first quarter, especially after a challenging financial year 2017, which saw the company underperform against budget.

“Our performance last year was hampered by an adverse exchange rate swing, which saw the depreciation of the ringgit against the dollar.

“With more than 50 per cent of our cost structure in dollars, the depreciation had a significant impact on our overall financial performance.

“Nevertheless, taken on aggregate, the company has made progress on the execution of the Malaysian Airlines Recovery Plan. This includes an improved cost base for the airline, bringing it in line with its peer network airlines,” he said.

However, Izham said the airline was preparing itself for a tough year ahead with competition and exchange rate volatility.