Malaysia Airlines reports second quarter loss

KUALA LUMPUR (Malaysia Airlines) - Malaysia Airlines today released its second quarter results for the period ending September 2005, reporting a net loss of RM367.7 million. With the loss of RM280.7 million reported for the first quarter, the net loss for the six months is RM648.4 million.

The second quarter loss was primarily attributable to continuing high fuel prices. Fuel costs rose by 45% to RM1.2 billion, a significant rise from RM799 million for the second quarter of 2004. Other contributing factors included staff cost, handling and landing fees, aircraft and maintenance and overhaul charges and WAU charges and leases.

Compared to the corresponding period total revenue increased by 9.4% to RM3.0 billion in the second quarter driven by the 11.7% increase in international passenger traffic. International passenger revenues increased by RM238.7 million or 12% to RM2.2 billion while MASKargo revenues increased by RM11.6 million or 2% to RM581.2 million. However yields (excluding fuel surcharge) decreased by 1.5% to 18.8 sen compared 19.1 sen in the corresponding quarter.

Financials – A Closer Look

  • Total revenue of RM3.0 billion, improved by 9.4% from RM2.7 billion previously.
  • Cargo revenue of RM581.2 million, improved by 2.0% from RM 569.6 million.
  • Fuel cost of RM 1.2 billion, increased by 45% or RM360.6 million, driven primarily by high fuel prices.
  • Loss after tax of RM367.7 million, from a profit after tax of RM132.7 million.
  • As at 30 September 2005, cash balance reduced to RM1.4 billion from RM2.1billion the previous year.
  • The primary use for the funds was to finance operations and the on-going investments to improve product and service standards, including airline retrofit exercises and various operational and support services systems.
  • Shareholders funds decreased by 17.1% to RM2.6 billion
  • Net tangible assets per share decreased by 17% to RM2.11 per share.

International Operations 

  • Passenger uplift increased by 0.25 million to 2.4 million when compared to the corresponding period in the previous financial year.
  • International passenger revenue of RM2.2 billion, improved by 12% from RM1.98 billion.
  • Revenue passenger km (RPK) growth of 11.1% exceeded the available seat km (ASK) growth of 4.4%.
  • There were improvements in both seat factors, which increased by 4.4 points.
  • Yield decreased by 1.5% to 18.8 sen from 19.1 sen the corresponding quarter.
  • Cargo load tonnage flown decreased marginally by 2.2% to 130.9 million kg.
  • Load factor improved by 0.3 pts to 62.2%

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