Malaysia Airlines net loss narrows in Q1 2012

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Malaysia Airlines Group has posted a loss after tax of M$171 million ($51 million) for the first quarter of 2012, an improvement from a loss of M$242 million in the same period last year.

The airline posted total revenue of M$3.11 billion for the three months to 31 March, with its cargo business posting a 15% decrease in operating revenue to M$431 million because of proactive capacity management.

Operating expenses for the period decreased by 3.1% to M$3.42 billion, with jet fuel expenses increasing by M$142 million to around M$1.31 billion.

The price of jet fuel averaged at around $135/bbl during the period, up by 12.5% year on year.

Operating loss for the period stood at M$307 million.

Malaysia Airlines Group chief executive, Ahmad Jauhari Yahya, said the net loss narrowed as a result of the closure of unprofitable routes especially for long haul services where yields were low.