DALLAS – Kuala Lumpur-based Malaysia Airlines (MH) anticipates achieving full operational recovery in China and North Asia by the end of June, with capacity across its network planned to reach pre-pandemic levels.
This comes as Malaysia Aviation Group (MAG), the airline’s parent company, reported a return to profitability, attributed to strong travel demand and improved cost management measures following its restructuring.
Return to Profitability
Malaysia Aviation Group (MAG) has reported a significant financial turnaround with a 2022 full-year operating profit of MYR556m (US$125m). This starkly contrasts the previous year’s MYR767m (US$173m) loss.
However, Firefly (FY), the low-cost unit of MAG, remained unprofitable for the full year due to weaker passenger yields. MH will transfer several domestic routes across Eastern Malaysia to FY from May 16. The route changes form part of the airline’s efforts to refine and improve its network and product offerings.
While acknowledging the challenging macroeconomic environment characterized by sustained high fuel prices, volatile forex, and higher operating costs due to inflation, labor constraints, recession, and geopolitical risks, MAG Managing Director Izham Ismail remains optimistic about the airline group’s prospects. He stated, “The travel demand outlook remains strong in the near term.”
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Feature Image: Malaysia Airlines Boeing 737-800 (9M-MLK). Photo: Wilbert Tana/Airways.