KUALA LUMPUR: Malaysian Airline System Bhd (MAS) continued its losing streak when it posted RM477.59 million net loss or 14.3 sen per share 3QFY11 ended Sept 30. This is the third consecutive quarterly loss for the airline since the beginning of this financial year.
In its notes to Bursa Malaysia, MAS said the loss was due to higher fuel cost, derivative loss of RM70 million and unrealised foreign exchange loss of RM195 million. In comparison, MAS posted a net profit of RM233.23 million a year earlier.
For 3Q, MAS posted an operating loss of RM156 million compared to RM35 million profit a year earlier. The loss came as the national airline posted RM3.57 billion revenue compared with RM3.39 billion a year earlier.
The higher revenue was due to a 3% growth in passenger load on a 6% capacity growth. The group also saw reduced seat factor by 2.7% to 76%, and recorded 6% growth in passenger yield.
“Total expenditure, however, increased by 10% or RM357 million to RM3.72 billion mainly due to increase in fuel cost by RM396 million as the total fuel cost increased by 37.1% over the same period last year,” it said.
Non-fuel cost was 2% lower or RM39 million than the same quarter last year. Cash and bank balances stood at RM1 billion as at Sept 30, compared with RM1.58 million three months earlier.
For 9MFY11, MAS posted a net loss of RM1.25 billion on a revenue of RM10.24 billion.
MAS said the operating environment for airlines remains challenging for 4Q due to high jet fuel prices, and the worsening European economic situation which affects its forward booking profiles for long-haul routes.
MAS said it is undertaking dynamic revenue management activities to mitigate the situation.
“Notwithstanding management’s efforts to mitigate the adverse situation, we expect the 4Q operational results to be weaker than 3Q. Management is reviewing all aspects of operations and inventories and any consequential provisions required shall be recognised in 4Q,” it said.
MAS said it is embarking on significant network rationalisation exercise to withdraw structurally weak, loss-making routes, and to embark on new higher yielding routes focusing on Asia.
“With the adoption of a leaner network, management shall also be accelerating the return of ageing aircraft, and in so doing improve the fuel efficiency of our fleet. We expect the full impact of these initiatives to begin bearing fruit in 2012,” it said.
MAS said these key strategies would be outlined in its business plan, which would be announced next month.
On its collaboration with Air- Asia Bhd and AirAsia X that came about following the share swap between Khazanah Nasional Bhd and Tune Air Sdn Bhd in August, MAS said it would announce several initiatives soon in the areas of training, ground handling, maintenance, repair and overhaul and joint procurement.
MAS fell four sen to close at RM1.36 yesterday with 1.58 million shares transacted.
This article appeared in The Edge Financial Daily, November 22, 2011.
In its notes to Bursa Malaysia, MAS said the loss was due to higher fuel cost, derivative loss of RM70 million and unrealised foreign exchange loss of RM195 million. In comparison, MAS posted a net profit of RM233.23 million a year earlier.
For 3Q, MAS posted an operating loss of RM156 million compared to RM35 million profit a year earlier. The loss came as the national airline posted RM3.57 billion revenue compared with RM3.39 billion a year earlier.
The higher revenue was due to a 3% growth in passenger load on a 6% capacity growth. The group also saw reduced seat factor by 2.7% to 76%, and recorded 6% growth in passenger yield.
“Total expenditure, however, increased by 10% or RM357 million to RM3.72 billion mainly due to increase in fuel cost by RM396 million as the total fuel cost increased by 37.1% over the same period last year,” it said.
Non-fuel cost was 2% lower or RM39 million than the same quarter last year. Cash and bank balances stood at RM1 billion as at Sept 30, compared with RM1.58 million three months earlier.
For 9MFY11, MAS posted a net loss of RM1.25 billion on a revenue of RM10.24 billion.
MAS said the operating environment for airlines remains challenging for 4Q due to high jet fuel prices, and the worsening European economic situation which affects its forward booking profiles for long-haul routes.
MAS said it is undertaking dynamic revenue management activities to mitigate the situation.
“Notwithstanding management’s efforts to mitigate the adverse situation, we expect the 4Q operational results to be weaker than 3Q. Management is reviewing all aspects of operations and inventories and any consequential provisions required shall be recognised in 4Q,” it said.
MAS said it is embarking on significant network rationalisation exercise to withdraw structurally weak, loss-making routes, and to embark on new higher yielding routes focusing on Asia.
“With the adoption of a leaner network, management shall also be accelerating the return of ageing aircraft, and in so doing improve the fuel efficiency of our fleet. We expect the full impact of these initiatives to begin bearing fruit in 2012,” it said.
MAS said these key strategies would be outlined in its business plan, which would be announced next month.
On its collaboration with Air- Asia Bhd and AirAsia X that came about following the share swap between Khazanah Nasional Bhd and Tune Air Sdn Bhd in August, MAS said it would announce several initiatives soon in the areas of training, ground handling, maintenance, repair and overhaul and joint procurement.
MAS fell four sen to close at RM1.36 yesterday with 1.58 million shares transacted.
This article appeared in The Edge Financial Daily, November 22, 2011.
