KUALA LUMPUR – Malaysia Aviation Group Bhd (MAG) has recorded a net profit of RM54 million for 2024, a notable achievement despite facing a range of challenges.
In a statement today, the group also posted an operating profit of RM113 million, showing its ability to stay profitable even in tough times, and highlighted its strong Ebitda of RM788 million, a reflection of the company’s resilience.
The airline group, which includes Malaysia Airlines and other subsidiaries, faced significant disruptions in the final quarter of 2024 due to delays in aircraft deliveries, extended maintenance periods, and supply chain issues, leading to an 18% cut in its flight capacity. However, despite these setbacks, MAG’s performance remained strong.
A key factor behind MAG’s profitability was a RM426 million reversal of impairments on its assets, including aircraft and equipment. These impairments, initially made during the pandemic in 2020, were reversed because of the group’s recovery in terms of capacity, revenue, and customer demand.
While the group’s total revenue for the year reached RM13.68 billion, it saw a slight 1.0% decrease compared to the previous year, partly due to the reduction in flights during the final quarter. However, MAG still managed to increase its available seat capacity by 6.0%.
MAG’s group managing director, Datuk Captain Izham Ismail, emphasised that despite operational hurdles, the group is focused on long-term goals and stability.
“As we work towards our vision of Destination 2030, we remain focused on commercial sustainability and nation-building,” he said as reported by Bernama, pointing to the company’s ongoing commitment to growing its fleet and enhancing customer service.
Part of this growth involves modernising the airline’s fleet. By 2030, MAG aims to operate a fleet of 55 new Boeing 737 aircraft, alongside the introduction of Airbus A330neo aircraft into its long-haul network.
Currently, the group has deployed two of these A330neo planes to Melbourne, Bali, and Auckland, with more expected to be added soon.
MAG also saw improvements in its passenger load factors, which increased to 80%, up from 77% the year before, especially in the premium segment of its market.
Despite the positives, not all subsidiaries fared well. Malaysia Airlines Bhd (MAB), for example, reported a sharp decline in operating profit – down 87% from RM1.09 billion in 2023 to just RM139 million. This decline was largely due to the impact of capacity cuts and lower revenue per passenger.
However, MAB still saw growth in the number of passengers carried, with a 17% rise year-on-year, and launched new routes to Male (Maldives), Da Nang (Vietnam), and Chiang Mai (Thailand).
Other parts of the business showed mixed results. Firefly, which shifted to jet operations from Subang Airport, saw its losses widen despite a rise in its load factor. On the other hand, the cargo division performed well, with MAB Kargo posting higher operating profits thanks to better load factors in its belly and freighter cargo segments.
The group’s ground handling business, AeroDarat Services, also reported strong growth, tripling its operating profit.
Looking to the future, MAG remains optimistic, with forward bookings up 9.0% year-on-year.
The group plans to continue expanding in key markets across Asean, Australia, New Zealand, and South Asia. Malaysia Airlines will also return to Paris in March 2025, marking its second European destination. – April 17, 2025