MAG announces record RM1.15b in net profits

The Malaysia Aviation Group (MAG) recorded a net operating profit of RM556 million for the financial year 2022.

Its net loss after interest and tax for the year was reduced by 79 percent to RM344 million from RM1.65 billion a year ago.

Its cash balance stood at RM4.6 billion at end-Dec 31, 2022.

Group managing director Izham Ismail said the group achieved a record net profit after interest and tax of RM1.15 billion in the fourth quarter of 2022.

He said the 4Q results were one of its best quarter performances in the past two decades, driven by robust demand, higher yield across passenger and cargo business segments as well as effective cost management and cash flow optimisation.

“The group also saw improvement across all its business segments during the year, while the cargo subsidiary, MABkargo Bhd (MABkargo) recorded marginally weaker performance compared to a year ago.

“It was amid softening global freight demand and increased capacity in the market in the second half of 2022 (2H22),” he said during the 2022 annual performance media briefing today.

Meanwhile, Malaysia Airlines Bhd’s (MAB) total revenue has tripled compared to FY21, underpinned by strong demand in the international sector for both passenger travel and cargo freight.

“MAB achieved to break even at operating profit level, an exceptional turnaround from an operating loss of RM612 million a year ago, while passengers carried was 6.7 times higher than the previous year,” he said.

However, Firefly remained in a loss position for 2022, on the back of weak yield and demand for both its ATR aircraft and jet operations, while Amal recorded its first year of profit from a loss position a year ago with the resumption of Hajj and Umrah travels.

At the same time, MABkargo’s performance remains strong despite the weakening of cargo demand in 4Q 2022 and achieved higher cargo tonnes per kilometre (CTKM) while maintaining its yield year-on-year.

“The group has shown stellar performance and we are quite optimistic of better performance for 2023 despite the challenges from fuel price and forex,” Izham said.

Moving forward, he said the MAG is looking forward to taking delivery of four out of 25 Boeing 737-8 from 3Q 2023 onwards.

As for MAB, he said with China’s border reopening, the airline aims to regain the remaining capacity for its entire network which currently stands at 85 percent, and fully resume its services to China and North Asia by the end of 1H23.

“This will spur economic growth and boost the overall business and trade links between Malaysia and China,” he said.

Izham also said that the group targets to reach and sustain an overall customer satisfaction index score of 82 percent, with several initiatives lined up to provide a better experience for customers.

“This year, MAG also intends to gradually expand the regional network through the introduction of new aircraft technology and deepen the partnership collaborations,” he said.

- Bernama