Malaysia Airlines trims loss in 2018
KUALA LUMPUR: Malaysia Airlines Bhd recorded a marginally lower loss for last year despite a challenging year, including crew shortages.
Malaysia Airlines group chief executive officer Captain Izham Ismail said last year had been challenging as the airline was hampered by intense competition with supply outstripping demand, volatility in fuel prices and foreign exchange fluctuations.
“While we saw traction in revenue average seat per kilometre (RASK) and the cost per available seat-kilometre, the margin gap was not enough for us to break even. However, losses last year were lower than the previous year,” he said yesterday.
Izham said the crew shortage also had a significant impact on the airline’s performance, although it gained some traction in stabilising its operations while continuing to be vigilant in managing revenue and cost.
He said Malaysia Airlines would roll out the next phase of its turnaround plan through a series of revenue improvement and cost rationalisation initiatives.
“With the competitive operating environment expected to persist, we have started concerted efforts to narrow the losses this year.”
He said despite the challenging operating environment last year, the national carrier showed improvements compared with the previous year.
The airline’s RASK saw a marginal increase of 2.0 per cent year-on-year (YoY) on the back of improved pricing segmentation while it registered a one per cent increase in total revenue with the overall load factor at a sustained 78 per cent.
Last year saw the airline making great progress in achieving operational stability with on-time performance improving by two per cent YoY, resulting from improved operational efficiencies in engineering and ground handling.
Six A350s and six A330-200 (ex-Air Berlin) aircraft were also added to its fleet last year.
MAB said the A350s were successfully deployed on the Kuala Lumpur–London route while the A330-200s were used on higher density regional routes across the Asia-Pacific region.
Malaysia Airlines is also continuing to use its A380-800 aircraft to service Amal, the first service dedicated for haj and umrah pilgrimages.