MAS sinks to heavy full-year loss
Malaysia Airlines (MAS) suffered a significant net loss in 2011.
The national carrier posted a net loss of MYR2.52 billion (US$839.9 million) last year, compared to a MYR234 million profit in 2010.
The group’s full-year result was impacted by a fourth quarter net loss of MYR1.28 billion, which marked the fourth straight quarterly loss for the airline.
The airline’s Group CEO, Ahmad Jauhari Yahya, attributed the loss to a 21% rise in expenses, led by 33% jump in fuel costs to MYR5.85 billion – 36.1% of the group’s total expense bill.
“The bottom-line group losses for 2011 underscore the imperative need for Malaysia Airlines to immediately adopt strong measures to stop the bleeding,” Jauhari Yahya said.
“The accounts for the year under review recognise provisions and escalating operational costs which although painful, gives us a holistic snapshot of the organisation. With full knowledge of our actual position, we will be better prepared to move forward,” he added.
MAS has already embarked on a major structuring plan, involving the sale of subsidiary units, route cuts and fleet rationalisation. The company also announced that it is finalising a new funding plan, which will includes “debt and/or equity market options”.
“The results make for unpleasant reading. The company is in crisis,” MAS Chairman, Md Nor Md Yusof admitted. “[But] the board and I remain confident that we now have a team and business plan in place that will bring the necessary sacrifices to ensure a turnaround and recovery.”