The Malaysian Aviation Group (MAG), parent company of Malaysia Airlines, recorded an annual profit of 54 million Malaysian ringgits ($12.2 million) during 2024, a decrease of 93% when compared to annual profit recorded for the prior 12-month period.
During 2024, the group’s operating profit reached 113 million ringgits ($25.6 million), while earnings before interest, taxes, depreciation and amortization (EBITDA) stood at 788 million ringgits ($178.5 million).
The group recorded a cash balance of 3bn ringgits ($679.8 million) as of December 31, 2024, without any capital injections from its main shareholder, Khazanah Nasional Berhad, since October 2021.
Malaysia Airlines, the groups airline business segment, posted an operating profit of 139 million ringgits ($31.4 million), a steep decline from 1.09bn ringgits ($246.9 million) that was recorded a year earlier, citing lower yields and capacity cuts during the fourth quarter of the year.
"Despite the capacity cuts, passenger traffic remained robust in the premium segment with stronger load factors from both passengers and (the) cargo segment," MAG managing director Izham Ismail reportedly told members of the media.
The airline carried 16.6 million passengers in 2024, up from 14.5 million the previous year, while its passenger load factor improved to 80% from 77%.
MAG said that capacity cuts during the years final quarter were driven by supply chain disruptions that extended maintenance times and new aircraft delivery delays.
The airline was expecting to receive its first A330neo delivery in September 2024, however this was delayed by two months due to findings identified by Airbus during the flight line stage. The airline subsequently grounded its new A330neo aircraft due to a technical fault, days after the aircraft took its inaugural flight in December.
“We are deeply disappointed by the aircraft delivery delays by Airbus, compounded by the ongoing setbacks of our Boeing 737 MAX 8 deliveries,” said Ismail in October 2024.
By 2030, the company will aim to operate a modernised, new generation narrowbody fleet of 55 aircraft comprising of 737 MAX 8 and 737 MAX 10 aircraft.
Additionally, MAG is integrating the A330neo aircraft into its long-haul network, with two aircraft having already entered service, operating to Melbourne, Bali and Auckland, with eight more expected to join operations through 2025.