KUALA LUMPUR, May 30- A significant improvement in operations led Malaysia Airlines to reduce its operating loss by 46 per cent to RM165 million in the first quarter ended March 31, 2013, from a loss of RM307 million in the same period last year.
The improved performance was delivered in the face of poor economic conditions in which the airline delivered 17 per cent increase in passenger traffic, 14 per cent increase in revenue, and a higher seat load factor of 76.6 per cent.
Revenue rose to RM3.545 billion from RM3.114 billion while pre-tax loss rose to RM278.457 million versus a pre-tax loss of RM169.33 million, according to a statement by the national carrier and a filing to Bursa Malaysia.
The airline registered a RM147 million positive cash balance from its operating activities in the first three months of this year, compared with a negative cash position of RM202 million in the previous corresponding period.
Group Chief Executive Officer Ahmad Jauhari Yahya said operating statistics were strong and recording encouraging traction to build up passenger numbers and growth.
“These have enabled us to generate a positive cash balance, and essentially stop the bleeding.
However, we still have a lot of work to do to align costs to revenue, to increase productivity and efficiency, and improve yields,” he said in the statement.
Moving forward, Ahmad Jauhari said the group expects interline revenue to increase further as more guests get to know about Malaysia Airlines through oneworld.
“Joining the alliance is a good platform to widen our reach and brand,” he added.
Traditionally, the first half of the year sees weaker performance for airlines. Coupled with increased pressure on yields from intensifying competition and higher costs, its net loss after tax was RM279 million from a loss of RM172 million previously.
This was mainly attributed to an unrealised forex loss of RM21 million in Q1 , 2013 compared to a forex gain of RM200 million in the previous year. Higher financing costs for its fleet renewal programme also contributed to the overall net loss, he said.
“The continued high jet fuel prices, added capacity in the market and increased competition, put pressure on our yields. The business environment is tough, but Malaysia Airlines is now able to respond faster to changes in the market,” said Ahmad Jauhari.
Jet fuel prices remained high at an average of US$135 per barrel in Q1 from US$130 in Q1’12, with the group’s fuel bill amounting to 37 per cent of total expenditure.
– BERNAMA
