Malaysia Aviation Group (MAG) has reported a positive operating profit of 889 million Malaysian ringgits (circa $187.75 million) in 2023, up 64% from 2022. Its cash balance stood at 4.3bn ringgits. ($908.1 million) at the year end. Net profit after interest and tax swung from a loss in 2022 of 344 million ringgits ($72.65 million) to a positive in 2023 at 766 million ringgits ($161.77 million).
The group said its strong performance was driven by a growth in passenger traffic, which rose from 9.9 million passengers in 2022 to 14.5 million in 2023. Additionally, its passenger load factor grew 5 percentage points to 77%.
""MAG’s performance in 2023 marked a decade-high, showcasing our trajectory towards success,"" said MAG managing director Izham Ismail. ""Post the successful financial restructuring in 2021, the group has achieved significant progress"".
Its airline business, Malaysia Airlines, saw operating profit rise from 80 million ringgits ($16.9 million) in 2022 to 1.099bn ringgits ($232.2 million) in 2023. Malaysia Airlines' capacity was at 86% of pre-pandemic (2019) levels by the end of December 2023. A full recovery is targeted for the second quarter of 2024.
Ismail added: ""In alignment with our fleet modernisation and growth strategy, MAG is on track to integrate 12 new aircraft into its fleet in 2024. Looking ahead, we are optimistic about operating a fleet consisting of 50 narrow-body and 50 wide-body aircraft by 2033.""
The group's loyalty business, Enrich, saw revenue increase by 34% in 2023.
MAG operating profit up 64% in 2023
