MAS delivers sustained recovery in 4QFY10

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KUCHING: The six-per cent increase in Malaysia Airlines System Bhd’s (MAS) unit revenue per available seat kilometre (ASK) in the current quarter to 18.8 sen reflected sustained recovery for the national arlines.

With a yield improvement of five per cent, traffic was up by 10 per cent outperforming the International Air Transport Association’s (IATA) forecast of
8.9 per cent growth, the group announced in a statement released from Sepang yesterday.

It also stated that seat factor also moved up at 77.4 per cent in last year’s fourth quarter ended December 31 against 76.5 per cent in the same period in 2009. Despite a nine per cent capacity increase, non-fuel unit cost (cost per ASK) dropped seven percent to 17.5 sen.

Managing director and chief executive officer, Tengku Datuk Seri Azmil Zahruddin commented, “We were able to see a strong rebound in 2010 due to added capacity through increased frequencies, new destinations and stronger international revenue from higher seat factor and yield.

“At the same time, we have acquired new aircraft and introduced our Eastern hub in Kota Kinabalu, offering a better product and greater connectivity to customers. We also have strengthened our balance sheet through the completion of our rights issue, with proceeds going towards the funding of our fleet renewal. This gives us a strong platform for sustained growth as we transform from a 100-per cent leased fleet to owning at least a third of our own aircraft.”

Financial-wise, MAS reported a RM226 million net profit for the fourth quarter under review with an operating profit of RM137 million, a RM108 million improvement from the fourth quarter of 2009. On a full-year basis, it registered a net profit of RM234 million with an operating profit of RM264 million.

The airlines’ cargo division MASkargo remained profitable for the fifth consecutive quarter with yields higher by 13 per cent to 81.9 sen on a full-year basis, with overall load up 4.3 points to 74.6 per cent.

Moving forward, the airlines intended to stay competitive and is committed to provide customers with a seamless journey.

“There is more room for improvement in the front end business. We need to grow this part of the business. We will receive more new aircraft with the Airbus 330-300 coming in April.