Malaysia Airlines poised for solid year after “encouraging” first quarter

Stronger demand and rising load factors should deliver an earnings turnaround for Malaysia Airlines (MAS) in 2010, although the outlook is not without risks. The Group recorded an operating profit of RM289.5 million in 1Q2010 ended 31-Mar-2010, "mainly due to the increase in other operating income as a result of A380 compensation, as well as improvement in passenger and cargo traffic demand". 'Other operating income' surged MYR354 million (USD110 million) from the same period last year, reflecting the A380 compensation. Without it, MAS would have been in the red again, as its expenses exceeded revenues by around MYR100,000 (USD32,000).