Struggling Malaysia Airlines (MAS) saw an improvement in its financial results during the second quarter of the year.
The national carrier remained entrenched in the red, posting a net loss of MYR348.7 million (US$111.6m) for the quarter ending 30 June 2012, but this marked a 34% improvement compared to the same period last year.
Total revenues fell 6% to MYR3.2bn after the airline slashed its route network. Group expenditure however, was slashed 13% to MYR3.4bn. Fuel costs, which accounted for 37% of expenditure, fell 18% to MYR1.3bn following a drop in consumption, while aircraft leasing costs fell 9% due to the return of two Boeing 747 aircraft.
“The much improved second quarter results… show that the tough decisions taken earlier to suspend high loss-making routes is showing results,” said the airline’s Group CEO, Ahmad Jauhari Yahya.
“With the competitive environment in which we operate in both locally and internationally as well as the continued high price of fuel, it is important that we were able to carefully and proactively capacity manage our fleet and network in line with market demand. The group’s aggressive focus to consolidate our network is helping the turnaround, as already showing in the improvement in yield and lower operating expenses, specifically spending on fuel,” he added.
For the first six months of the year, MAS’ net loss stood at MYR520.1m – 32% better than the first half of 2011.
