Malaysia Aviation Group (MAG) posted its third consecutive annual operating profit, despite significant network cuts at the end of the year amid supply chain disruptions.
For the year to 31 December 2024, the group reported an operating profit of MYR113 million ($25.6 million), down more than 87% year on year.
The parent company of Malaysia Airlines acknowledged that its revenue had been affected by “operational headwinds”, particularly in the “traditionally strong” fourth quarter of the year.
Mainline operator Malaysia Airlines cut 18% of its operating capacity from September to December, as it battled a double whammy of aircraft reliability issues and delivery delays.
Still, MAG’s full-year revenue only fell 1% year on year to MYR13.7 billion, buoyed by strong premium travel demand, as well as about 6% growth in capacity. The group’s two airlines Malaysia Airlines and Firefly also saw passenger yields decline about 10%.
MAG’s passenger airlines carried 16.6 million passengers, a 16% rise year on year, while passenger load factors up three percentage points to 80%.
Group managing director Izham Ismail says the group showed “resilience” amid operational challenges. In prepared comments, Izham adds: “While facing operational challenges, we have not only maintained profitability but also ensured that we are strategically positioned for the future.”
The airline group recently ordered 30 Boeing narrowbody aircraft - comprising 18 737 Max 8s and 12 larger Max 10s. Izham notes that the new aircraft will “enhance our operational efficiency and flexibility to better serve both domestic and international markets”.
“As our fleet modernisation progresses, we are also strengthening our network to maximise connectivity and meet growing demand,” he adds.
To this end, the airline will focus on growing operations to “key markets” in Southeast Asia, Australia/New Zealand, as well as South Asia.
