Malaysia Airlines posts $167m quarterly loss
Malaysia Airlines says that falling passenger numbers and yields following the loss of two aircraft this year are behind its worst quarterly loss since 2011.
December 15, 2014
Malaysia Airlines says that falling passenger numbers and yields following the loss of two aircraft this year are behind its worst quarterly loss since 2011. The troubled airline’s thirdquarter net loss widened to MYR 576.1 million (US$167 million) from MYR 375.4 million a year earlier, the worst quarterly result since October- December 2011.
“Whilst declining fuel prices have helped stem losses in our quarterly result, Malaysia Airlines continues to struggle despite efforts to reduce the financial bleeding,” the company said. “Certain markets, particularly China, continue to pose challenges to return to previous levels.” The news emphasises the challenges that the state fund Khazanah, its majority shareholder, faces in restructuring the company. It plans to delist MAS from the Kuala Lumpur stock exchange by the end of the year, cut a third of the workforce and replace chief executive Ahmad Jauhari Jahya.
The first steps in MAS’ restructuring has seen the announcement that its domestic carrier, MASwings based out of Kuching, East Malaysia will be launched as an independent budget carrier in 2015 with flights around the region as far as China. According to reports, MASwings will continue to operate a fleet of fourteen ATR72- 500s and -600s, and five DHC-6s on internal flights to the country’s more remote regions, as well as to Tarakan and Pontianak in Indonesia and Puerto Princesa in the Philippines.