Malaysia Air Q3 Net Profit At MYR233 Million

November 25, 2010

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Malaysia Airlines said on Thursday that it has swung back to profit for the third quarter ending 30 September 2010, posting a net profit of MYR233 million ringgit (USD$74.5 million), on the back of a 15 percent increase in revenue.

The national carrier reported a MYR123 million operating profit, rebounding from an operating loss of MYR77 million in Q3 '09.

The airline said it recorded its highest seat factor in 15 years at 78.6 percent in Q3 2010 with 3.3 million passengers compared to 76.7 percent in 3Q09.

Malaysia Airlines said its balance sheet remains healthy with cash and negotiable deposits of some MYR2.26 billion as at September 30, 2010.

Managing Director Tengku Azmil Zahruddin said that moving forward to 2011, the airline is positioning itself for profitable growth by taking delivery of new aircraft, identifying new growth areas and maximising revenues through aggressive sales and marketing.

The carrier took delivery of two new Boeing 737-800 aircraft earlier this month and will receive one more aircraft by end 2010. Funding for all incoming aircraft in 2011 has also been lined up.

"We are in a challenging and unpredictable industry and have to be mindful of the many things - economic fluctuations, rising fuel prices, even volcanic eruptions - that can quickly have an impact on our business," Azmil said.

Fuel price volatility remains a key challenge, the airline said. It has restructured its hedge levels to 33 percent at USD$93 per barrel from 40 percent at USD$100 per barrel.

(Reuters)