Malaysia Airlines Group reported a net profit after tax of RM 1.146 bn, its best in the last twenty years in Q4 of 2022. The Group reported an operating profit of RM 556 million as compared to a loss of RM 612 million last year. The return to profitability was also despite higher fuel prices, labor costs, and a weaker currency.
The group reported its best Q4 results in the past two decades and significantly reduced their full-year net loss year-on-year (Y-O-Y).
The airline is optimistic for this year, especially as China and North Asia are recovering strongly.
The Malaysia Aviation Group attributes the profits to robust demand, higher yield across passenger and cargo business segments, and effective cost management with cash flow optimization in spite of lower flight capacity as compared to pre-pandemic levels.
The Group reported an improvement in all business segments leading to full-year profits. The Airlines’ total revenue tripled compared to 2021 due to robust demand in the international sector for both commercial passenger travel and cargo segments.
Malaysia Airlines carried approximately 9.9 million passengers compared to the 1.7 million in 2021. The passenger load factor also improved from 46% to 75%.
The Group ramped its capacity to several destinations like second daily non-stop flight between Kuala Lumpur International Airport and Doha Hamad International Airport in conjunction with Qatar Airways. The airline is currently operating at an estimated 85% of pre-pandemic capacity and is optimistic of returning to total capacity in China and North Asia by the end of this June. It expects overall full capacity levels across its entire network to return by the end of this year.
Meanwhile, the low-cost unit of MAG, Firefly did not report any profit last year due to weak yield and lower demand for ATR and jet operations. Malaysia Airlines will transfer all its intra-East Malaysia routes to Firefly from May 16.
With this Malaysia Airline will operate flights between East Malaysia and Peninsular Malaysia and domestic flights within the Malaysian peninsula
Going ahead, the Group is optimistic and anticipating a strong recovery. The airline is expecting to take delivery of four out of 25 Boeing 737 MAX 8s from Q3 of 2023.