MALAYSIA AIRLINES REPORTS ANOTHER LOSS
- Latest News
- Monday, 24 July 2006
Its revenue, however, rose to RM2.970 billion from RM2.964 billion previously.
MAS said its passenger revenue, including fuel surcharge and administration fee and excess baggage charge, increased to RM2,151 million in Q1 2006 (RM2,096 million in Q1 2005).
MASkargo has reported an improved cargo yield by 12 per cent (CTKs) and load factor increase of one per cent to 60.2 percent for the first quarter ended 31 March 2006.
Cargo revenue, including fuel surcharge also improved increasing by 4.0 per cent.
But the removal of two freighters from the fleet in the last 12 months resulted in capacity dropping by 9.0 per cent. The airline will take delivery of two new
B747-400S in the second quarter which are expected to provide better fuel efficiency and improve profitability.
Commentating on Q1 financial results, YM Tengku Azmil Zahruddin, executive director and chief financial officer said: “Over the past few months, we have introduced a number of turnaround initiatives. Under our revenue enhancement program, measures implemented include tighter control of ticket inventory, excess baggage charge collection, increased fuel surcharge and collection of administration fees. At the same time, we have also reduced our expenditure in a number of areas – from staff costs and advertising and promotions to maintenance and in-flight costs. All of these initiatives are now beginning to reflect on the bottom-line, which explains the uptrend in the revenue and the downtrend in the expenditure.
"From the Q1 2006 results, it is clear that Malaysia Airlines is finally taking all the right actions to resolve its perennial problem of low yield. We are definitely closing the yield gap with our competitors. This is good news for Malaysia Airlines, going forward."
