Malaysia Airlines Q2 net loss narrows on revenue growth, cost-cutting measures

Net loss for the April-June period stood at 177.08 mln rgt compared with a loss of 277.45 mln a year earlier, while operating loss also narrowed to 160.7 mln rgt from 278.4 mln.

However, the airline posted a wider net loss for the first six months of the year, at 498.2 mln rgt compared to 166.2 mln a year earlier, following a dismal first quarter.

In notes accompanying its results, the company said operating expenses in the second quarter totaled 3.21 bln rgt compared with 3.16 bln a year earlier, while operating revenue improved slightly to 2.95 bln rgt from 2.8 bln.

It said its second quarter performance improved compared to the previous quarter "primarily due to higher operating revenue, improved yields and savings arising from cost-cutting measures which limits the overall increase in expenses implemented under the business turnaround plan initiatives."

Looking ahead, Malaysia Airlines said "competition remains intense" and that a slowdown in the US economy caused by higher interest rates and fuel prices could impact global economic growth and air travel.

"With oil prices remaining high due to uncertainties following the Lebanon conflict and tensions in the Middle East, the continued imposition of high fuel surcharges by airlines could dampen...travel demand," it said.

However, the carrier said it is on track to meet its internal targets as outlined in its turnaround plan.

"With the changes that are currently being implemented (under the plan), we are cautiously optimistic that our yields and load factors will continue to improve," it said.