Malaysia Airlines expecting to post profit of up to USD90 million for FY2010
Malaysia Airlines CEO, Tengku Azmil Aziz, stated the carrier expects to post an operating profit of up to USD90 million for FY2010 (Reuters, 24-Mar-2010). The carrier is also considering debt financing this year to fund aircraft orders, but has no plans for additional equity raising. He added the carrier has hedged approximately 60% of its fuel requirements for this year, estimating oil prices will range from USD80-100 in 2010 and 2011.
Malaysia Airlines: “We have got a target...of MYR100 [million] to MYR300 million profit. At an operating level, that would be better than 2009. Results for last year incorporated a lot of the fuel price difference. So if you strip that out, 100 [million] to 300 million ringgit would be better. We did lose money at an operating level last year…We will continue to do it [fuel hedging]. Sometimes you're going to get hit and sometimes you're going to do well out of it. But the idea is to smooth the fuel price fluctuations as much as you can. The key thing will be what happens to the global economy. We are seeing quite different regions recovering at different paces. Fuel prices obviously are a concern as well. Those are the two big elephants in the room. The other things don't matter as much,” Tengku Azmil Aziz, CEO. Source: Reuters, 24-Mar-2010.