Malaysia Airlines 49% ahead of budgeted loss in 2016, profitable in Dec-2016

Malaysia Airlines CEO Peter Bellew reported (01-Mar-2017) "good performance in a challenging environment" in 4Q2016, with an acceleration in bookings attributed to a focus on premium business travellers, all-inclusive economy class fares and improved customer service. The airline said it was profitable in Dec-2016. Improved load factor in 2H2016 was attributed to a focus on revenue generation, including "aggressive sales and marketing initiatives." The airline ended 2016 49% ahead of its budgeted loss for the year and said its turnaround initiatives are delivering positive results. The carrier said it maintained "fare discipline," despite decreases in competitors' fares. The airline remains focused on cost control and identified MYR400 million (USD89.9 million) in cost reductions in 2017 to offset the strength of the US dollar. The carrier sees "enormous growth potential" in inbound tourism from China. The company's 2017 outlook remains cautious with the weaker ringgit, overcapacity and "intense competition" expected to be dominant themes. The company believes it will improve on targets for 2017, barring unexpected adverse declines in airfares due to overcapacity and competition. [more - original PR]