Update MAS 2Q net loss shrinks 50%, posts RM8m operating profit

by **Cals** Wed 21 Aug 2013, 01:19

Update MAS 2Q net loss shrinks 50%, posts RM8m operating profit
Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Tuesday, 20 August 2013 18:41

KUALA LUMPUR (Aug 20): Malaysia Airlines System Bhd (MAS) said its net loss for the second quarter to end-June 2013 narrowed by about 50% to RM175.9 million, from a net loss of RM349.2 million in the second quarter of 2012.

But the national carrier said it posted an operating profit of RM8 million for the quarter, compared to an operating loss of RM102 million in the corresponding quarter one year ago.

There was also improvement in revenue for the quarter, rising to RM3.8 billion from RM3.3 billion a year ago.

In a press statement, MAS said the improved result was attributed to the strong growth in revenue and the focus on productivity and cost control.

“The group reported stronger year-on-year operational performance with 14% increase in revenue and 19% increase in capacity. Overall traffic increased 29% and seat loads climbed to a 10-year record high of 80%.”

For the first six months of 2013, Malaysia Airlines recorded a 61% reduction in operating loss of RM157 million compared to a loss of RM409 million in the previous year corresponding period, added the statement.

Net loss for 1H 2013 ended 30 June 2013 was RM454.8 million compared to a loss of RM521.0 million one year ago.

Commenting on the financial results, MAS group CEO Ahmad Jauhari Yahya said: “We are pleased that we have been able to bring in an operating profit in Q2 this year... The strong push to fill our aircraft, optimize our asset utilization and preserve shareholder value is gaining good momentum.”

“We are making good progress to pare down our losses with the many initiatives to drive revenue, manage costs and improve productivity."

“We remain on track with our business plan to turnaround our group and build sustainable profit by end 2014”, added Ahmad Jauhari.

MAS’ business plan, unveiled at the end of 2011, targets profitability in three years.

Going forward, Ahmad Jauhari sees a better second half of 2013. “Traditionally the second half of the year is better compared to the first half. We believe the rest of 2013 will be encouraging,” he said.