Malaysia Airlines Group (MAG) and Malaysia Airlines Berhad (MAB) reported their best Q4 results in the past two decades and significantly reduced the full-year net loss year on year. The airline is optimistic for this year, especially as China and North Asia are recovering strongly, it said on April 18. Malaysia Airlines reduces loss after strong Q4.
MAB reported a net profit after tax in Q4 of RM 1.146 billion, which is the best in two decades. For the full year 2022, the net operating profit was RM 556 million compared to RM -612 million in the previous year. MAB says it reached break even on operating profit level after ending a second quarter at a profit.
Full-year 2022, the Group reported a net loss after tax of RM 344 million compared to RM -1.65 billion in 2021. EBITDA was RM 1.61 billion versus RM 433 million. It had RM 4.6 billion in cash available by the end of December. MAG hasn’t further specified its financial results like revenues and expenses.
Malaysia Airlines saw a strong recovery, citing robust demand and higher yields for both passenger and cargo activities, although the latter showed marginally weaker margins as the cargo market softened. The number of passengers carried increased to 9.9 million from 1.7 in 2021 when Malaysia and the neighboring countries were confronted with lockdowns and travel restrictions. The average load factor improved to 75 percent, up from 46 percent.
One of MAB’s key priorities for 2023 is improving its on-time performance, which dropped to 79.8 percent from 89.2 percent year on year. This resulted in a lower customer satisfaction index score, which went from 84 to 79 percent, whereas the net promoter score dropped from 54 to 31 points. Malaysia says that it is “committed” to improving these scores.
In its outlook for 2023, the focus is very much on China and North Asia. Malaysia expects to benefit from pent-up demand in these two markets and intends to bring capacity back to full pre-pandemic levels before the end of HY1. The partnership with Qatar Airways generated good traffic on the Kuala Lumpur to Doha route and onward connections to Europe, the US, and Africa. Malaysia Airlines expects this trend to continue this year.
Malaysia continues its fleet renewal and expects the first four Boeing MAX 8s on lease from Air Lease Corporation (ALC) by Q3. The carrier signed a long-term lease contract with ALC for 25 MAX 8s. The airline will take delivery of its first Airbus A330-900 in 2024. It ordered ten of them last August, but they are part of a sale and leaseback with Avolon together with ten more on lease from the Ireland-based lessor.
Active as a journalist since 1987, with a background in newspapers, magazines, and a regional news station, Richard has been covering commercial aviation on a freelance basis since late 2016.
Richard is contributing to AirInsight since December 2018. He also writes for Airliner World, Aviation News, Piloot & Vliegtuig, and Luchtvaartnieuws Magazine. Twitter: @rschuur_aero.
