Monday, August 27, 2007

MAS Returns To The Black With Pre-Tax Profit Of RM118.94 Mln

Malaysia Airlines returned to the black in the second quarter ended June 30, 2007, chalking up a pre-tax profit of RM118.94 million from a pre-tax loss of RM161.59 million in the same period last year.

Attributing it to higher passenger revenue and marked improvements from the business turnaround plan (BTP), the national carrier said revenue rose to RM3.551 billion from RM3.032 billion.

MAS said it chalked up RM3.079 billion from airline operations, RM647.93 million from cargo services and RM2.54 million from catering.

With global passenger growth set to expand by more than six percent for the next five years, MAS said it would strengthen its presence particularly in Asean, China, India and Middle East markets.

MAS Managing Director and Chief Executive Officer Datuk Idris Jala said Q2 net profit was at RM113 million, improving its performance by RM290 million from RM177 million in losses a year earlier.

This marks the airline's fourth successive quarter of net profit since the launch of its BTP in February 2006, and tracks well for MAS to achieve its stretch profit target of RM300 to RM700 million this year, he said in a statement here today.

He said MAS made a huge improvement with sales increasing 17 percent to RM3.55 billion from RM3.03 billion a year ago.

Revenues rose RM519 million, with passenger revenue increasing 20 percent to RM2.5 billion.

Yield, the average fare per passenger per kilometer flown grew 13 percent while seats filled or seat factor rose 1.2 percentage points to 70 percent.

This enabled MAS to post an operating profit of RM48 million from losses of RM163 million previously, said Idris Jala.

International routes turned a profit of RM7 million compared with losses of RM163 million a year ago while domestic operations made RM41 million.

Idris Jala said: "We made good progress, turning an operating profit of RM48 million in the second quarter which traditionally has been the airline's worst financial period."

"But to sustain profitability, we need to make radical changes. Malaysia Airlines must transform into a 5-star airline with low-cost carrier (LCC) cost.

"To achieve this goal, we must change totally. Our services have to be top-class. What we offer our customers must be different and compelling.

Its newly-launched community airline, Firefly, has obtained two government approvals to fly from Johor Baharu and Kota Kinabalu, in addition to Penang and Subang.

"We have also submitted requests to fly to more local and regional routes," he said.

Looking ahead, he said he was upbeat about the second half as it has been traditionally better as air travel peaks during this period.

"We want 2007 to be the year where we make the highest profits in our corporate history. I have confidence in the MAS people, we are seeing the results and above all, we know what it takes to win."

Source : Bernama
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