MAG, which posted a net loss of RM344 million in FY 2022, has also seen a 31% increase in revenue, from RM10.61 billion to RM13.85 billion, and a 64% jump in net operating profit, from RM540 million to RM889 million.
Besides Malaysia Airlines, MAG’s airlines business also includes Firefly, MASwings and Amal.
MAG managing director Izham Ismail said the group’s strong performance was driven by robust passenger traffic from the premium segments, enhanced international network flow and better capacity management.
He also attributed MAG’s first-ever profit to effective collaborative partnerships and improved passenger yields, adding that its cash balance of RM4.27 billion as of Dec 31, 2023 is indicative of its financial stability.
“All this was achieved despite higher operational and labour costs, the weaker ringgit, challenges in supply chains due to increasing costs and uncertain delivery commitments, fuel prices, as well as elevated interest rates,” he said at MAG’s financial results briefing here today.
Izham said Malaysia Airlines’s total revenue improved by 45% driven by higher capacity, strong demand and a focus on the international sector for the passenger business segment.
Meanwhile, its 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 third-party revenue now contributing 24% of its revenue.
Moving forward, Izham said, MAG is poised to capitalise on the momentum generated in 2023 and continue its journey towards sustainable growth.
He also noted that the group’s non-airline aviation services businesses are expected to contribute up to 30% of the group’s total topline by 2025.
“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 wide-body aircraft by 2033,” he said.