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9-Sep-2016 10:37 AM

Malaysia Airlines reports turnaround progress in 2Q2016, stronger performance expected in 3Q2016

Malaysia Airlines reported (08-Sep-2016) steady progress on its turnaround plan in 2Q2016. The quarter was weaker due to seasonality and soft demand during Ramadan. Overall load factor was weaker, but domestic loads improved. On time performance was stable amid external challenges, including delays in immigration processing and infrastructure constraints at Kuala Lumpur International Airport. The airline's customer service index continued to recover as it introduced product improvements. The airline concentrated on managing costs and improving products in catering, on time performance and new business class seats. The carrier reported increased competition in Malaysia and global pressure on business class yields. Forward booking patterns are stronger for 3Q2016 and business class loads are expected to improve in 4Q2016. The carrier will focus on revenue generation in 2H2016 with more aggressive marketing and sales initiatives, while maintaining cost discipline. Contract renegotiation and supplier consolidation will continue. The airline expects stronger performance in 3Q2016 and forecast its loss for FY2016 will be significantly smaller than budgeted at the beginning of 2016. The carrier aims to be sustainably profitable by 2018. Malaysia Aviation Group CEO Peter Bellew said: "Malaysia Airlines made continued progress in what is traditionally our weakest quarter. Competition both domestically and globally remains intense and I expect it will intensify in the second half of the year." [more - original PR]

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