Malaysia Airlines remains in the red despite 26% jump in 2Q2010 revenue

Malaysia Airlines revenue up 26% - financial highlights:

• Three months ended 30-Jun-2010:
  • Operating revenue: USD1,006 million, +26% year-on-year;
    • MASkargo: USD169.2 million, +74%;
  • Operating costs: USD1,100 million, +17.7%;
    • Fuel: USD346.5 million, +44.2%;
    • Labour: USD165.7 million, +3.7%;
  • Operating profit (loss): (USD89.8 million), compared with a loss of USD133.8 million in p-c-p;
  • Net profit (loss): (USD167.8 million), compared with a profit of USD275.4 million in p-c-p;
  • Passenger numbers: 3.2 million, +14.3%;
  • Load factor: 74%, +8.2 ppts;
  • Yield: USD 7.52 cents, +2%;
  • Cargo yield: USD 26.57 cents, +21%;
  • Revenue per ASK: USD 5.57 cents, +15%;
  • Cost per ASK: USD 5.60 cents, +6.0%;
• Six months ended 30-Jun-2010:
  • Operating revenue: USD1,909 million, +17.5%;
  • Operating costs; USD2,047 million, +11.5%;
    • Fuel: USD664.2 million, +43.0%;
  • Operating profit: USD1.2 million, compared with a loss of USD178.2 million in p-c-p;
  • Net profit: USD70.1 million, compared with a profit of USD56.9 million in p-c-p;
  • Passenger numbers:
  • Load factor: 74.4%, +13.5 ppts;
  • Revenue per ASK: USD 5.50 cents, +9%;
  • Operating cash flow: (USD90.5 million), compared to a negative cash flow of USD464.3 million in p-c-p;
  • Cash and cash equivalents: USD633.0 million, +11.4%;
  • Total assets: USD3,755 million, +39.7% when compared with period ended 31-Dec-2009;
  • Total liabilities: USD2,763 million, +12.1%. [more]

*Based on the conversion rate at USD1 = MYR3.18

Malaysia Airlines: "While we are doing the right things, and this is reflected in the improved operational performance for Q2 which is traditionally our weakest quarter, we have instituted additional measures to recover more of the fuel cost increase. The volatility of the fuel price remains a key challenge for the industry," Azmil Zahruddin, Managing Director and CEO. Source: Malaysia Airlines, 16-Aug-2010.

Malaysia Airlines: "The action is in our back yard as the Asia Pacific region is demonstrating strong growth. For 2Q10, our passenger numbers are up 14.7%. We are recording higher than pre-economic crisis seat factor. As the positive trend is holding up for the rest of the year, we will continue to focus on increasing yield, as well as gaining premium customers. We have put in place an aggressive sales programme to increase corporate sales," Company statement. Source: Malaysia Airlines, 16-Aug-2010.