Kuala Lumpur, March 21: Malaysia Aviation Group (MAG), the parent company of Malaysia Airlines, has reported a significant financial turnaround, marking its second year of positive operating profit.
For the year ending December 31, 2023, MAG announced an operating profit of RM889 million, a 64 per cent increase from the previous year.
This success is underlined by a strong cash balance of RM4.3 billion, maintained without any capital injections from its main shareholder, Khazanah Nasional Berhad, since October 2021.
In a remarkable shift from a RM344 million loss a year earlier, MAG recorded a net profit after interest and tax of RM766 million for the fiscal year 2023.
This is the group’s first full-year net profit since its inception in 2015, highlighting a RM1.1 billion positive swing.
Additionally, the group saw a 22 per cent improvement in EBITDA, reaching RM1.97 billion compared to RM1.61 billion in the previous year.
Passenger traffic and capacity surged by 47 per cent and 61 per cent year-on-year, respectively, with the airline enjoying a stronger average load factor of 77 per cent, up from 72 per cent the year before. This performance growth was driven by robust passenger traffic, particularly in the premium segment, enhanced international network flow, effective capacity management, deep partnership collaborations, and stronger passenger segment yields.
These achievements were made despite facing challenges such as higher operational and labor costs, a weaker ringgit, supply chain issues, rising fuel prices, and higher interest rates.
MAG’s main airline, Malaysia Airlines Berhad (MAB), reported a 45 per cent revenue increase from the previous year, supported by higher capacity and strong demand, especially in the international passenger business segment.
Malaysia Airlines has now reinstated 86 per cent of its pre-pandemic capacity, with full recovery expected by the second quarter of 2024.
The group’s operational highlights include the introduction of new destinations, improvements in the performance of subsidiaries like Firefly and Amal by Malaysia Airlines, and advancements in aviation services and loyalty & travel services.
MAG’s commitment to innovation and customer service excellence remains strong, as demonstrated by the introduction of new in-flight services and plans for fleet expansion.
With 12 new aircraft set to join its fleet in 2024, MAG is optimistic about its future, aiming to operate 100 narrow-body and wide-body aircraft by 2033.
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