kuala lumpur: With reduced capacity reductions in the final quarter of 2024 (Q4’24), Malaysia Airlines Group (MAG) reached RM111.3 million after net income (net income) for the third consecutive year of year in annual interest and taxes (net income) and operating income.
Capacity reductions caused by global supply chain disruption, extended downtime in aircraft maintenance and delays in delivery of new aircraft are typically hit between dent revenues and revenues across the group during peak travel.
MAG Managing Director, Datuk Captain Izham Ismail said the impact of the cuts has significantly changed the group’s financial trajectory.
“With overall performance this year, we are really behind the capacity reductions we made in the fourth quarter, and we estimated that if we hadn’t made those cuts, the group’s profit could have reached RM580 million.
“We had no cash balance of RM3 billion and no more shareholder injections,” he said, finishing the year with Mag’s 2024 financial year performance briefing.”
He said revenues fell 4% despite a 7% increase in capacity.
“The load factor was higher at 81% compared to 77% the previous year, but yields fell as Q4, which is usually the highest quarter, was where most of the reductions occurred.
As a result, despite an increase in available seat kilometres by 6%, full-year revenues fell to 13.68 billion, to 1% year-on-year (question). Group revenue (EBITDA) before interest, tax, depreciation and amortization was RM 788 million, while operating income was RM 113 million.
A key contributor to revenue was a reversal of previously recognized impairment losses on aircraft, property and other assets during the 2020 Covid-19 pandemic of RM426 million. The reversal was attributed to improvements in load factor, volume and yield over the past two years.
Meanwhile, Malaysia Airlines’ operating profit fell from RM139 million to RM139 million, down 87% from RM10.9 billion the previous year due to a decline in capacity and yield.
“In spite of the set-off, MAG has closed the year since October 2021 with a cash balance of RM3 billion and an additional capital injection from its sole shareholder, Khazanah Nasional. The load factor is resilient, rising 3 percentage points from 2023, showing robust demand for both passengers and freight.
The group carried 16.6 million passengers in 2024, from 14.5 million in 2023, with passengers harvesting from 33.3 sen to 30.1 sends. Time performance improved slightly to 73% from the previous 72%.
Izham said the non-air conditioning segment also contributed positively to the group’s performance.
“MAB Kargo recorded higher operating income supported by stronger load factors, while ground handle unit Aerodarat tripled operating income behind the higher flight handling volume. Amal by Malaysia Airlines recorded a 36% improvement over the previous year,” he added.
Despite the operational set-off, Mag is pushing for fleet updates and network expansion, Izam said.
“Two new Airbus A330neo aircraft are already in service on long-haul routes, with eight more expected this year. The group plans to resume flights to Paris in March 2025, strengthening its European footprint.”
He added that he has increased by about 9% year-on-year, due to strong demand in major markets such as ASEAN, Australia, New Zealand and South Asia.
