MAG returns to black in FY23 with net profit of RM766 mln
KUALA LUMPUR: The Malaysia Aviation Group (MAG) returned to the black with a net profit of RM766 million for the financial year ended Dec 31, 2023 (FY23), a swing of nearly RM1.1 billion against a net loss of RM344 million in FY22.
The group recorded higher revenue of RM13.85 billion, an increase of 31 per cent against RM10.61 billion in FY22.
It also recorded a net operating profit of RM889 million for FY23, marking a robust 64 per cent increase from the RM540 million recorded in FY22.
As of Dec 31, 2023, MAG’s cash balance stood strong at RM4.27 billion, indicative of its financial stability and strategic foresight.
Group managing director Datuk Captain Izham Ismail attributed the milestone achievement of the group’s first-ever net profit and strong performance to robust passenger traffic from the premium segment, intensified international network flow, and active capacity management.
He said this during MAG’s FY23 Annual Performance briefing yesterday, where he highlighted the collaboration between airlines and aligned non-airline ventures, along with stronger yield for the passenger segment.
“These were achieved despite higher operational and labour costs, weaker ringgit, challenges in supply chains due to increasing costs and uncertain delivery commitments, fuel prices, and elevated interest rates,” added Izham.
Meanwhile, Malaysia Airlines Bhd’s (MAB) total revenue improved by 45 per cent yearon-year, underpinned by higher capacity, strong demand, and a focus on the international sector for the passenger business segment.
MAB achieved a significantly higher operating profit of RM1.10 billion from RM80 million in 2022, while its capacity was at 90 per cent of that in 2019.
Meanwhile, the group’s cargo arm, MAB Kargo Sdn Bhd (MASkargo), recorded a lower operating profit due to the further softening of freight cargo demand and increased market competition.
MAB Engineering Services Sdn *Bhd continued to gain traction and performed well, with thirdparty revenue now contributing 24 per cent of its revenue.
The group has achieved significant progress in its Long-Term Business Plan 2.0 turnaround plan following its successful financial restructuring in 2021, achieving positive earnings before interest, taxes, depreciation and amortisation, reduction in fiscal losses, as well as healthy operational cash flow, said Izham.
Looking ahead, he said MAG is poised to capitalise on the momentum generated in 2023 and continue its journey toward sustainable growth, focusing on driving innovation, enhancing operational efficiency and delivering superior experiences to customers.
He also noted that the group’s non-airline aviation services businesses are expected to contribute up to 30 per cent of the group’s total topline by 2025, amidst the anticipated softening of air travel yields in the latter part of 2024.
“In line with our fleet modernisation and growth strategy, MAG is on track to integrate 12 new aircraft into its fleet in 2024. We are optimistic about operating a fleet consisting of 50 narrow-body and 50 widebody aircraft by 2033,” he added. — Bernama