MAG's success is reflected in its ability to navigate post-pandemic recovery and manage fleet and network expansion
Despite flight disruptions, supply chain delays, and an 18 pc capacity cut in the final quarter, Malaysia Aviation Group (MAG) ended 2024 with a net profit of USD 12.2 million. The parent company of Malaysia Airlines recorded its third consecutive year of operating profit, signalling steady financial recovery in a challenging post-pandemic aviation environment.
In a press statement, the Group says that its performance, underscored by an EBITDA of USD 178 million and an operating profit of USD 25.58 million, highlights its resilience in the face of a difficult market environment.
It adds that its success comes even as it contended with disruptions in its operations, including a proactive decision to cut capacity by 18 pc in the fourth quarter.
The statement adds that this move, driven by supply chain issues that extended aircraft maintenance times and delayed new deliveries, impacted the Group’s overall revenue, which stood at USD 3.10 billion, a modest 1 pc decrease from the previous year.
It adds that the passenger traffic remained robust, with a stronger-than-expected load factor averaging 80 pc, up from 77 pc in 2023, and a 17 pc increase in the number of passengers carried.
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The group says that the airline’s ability to maintain profitability is significant, especially considering the challenges it faced. For instance, Malaysia Airlines Berhad (MAB), one of MAG’s key subsidiaries, saw a sharp decline in operating profit, down 87 pc to USD 31 million from USD 246.5 million in 2023. This was largely due to lower yields and the impact of the capacity cuts in Q4.
It adds that despite these setbacks, MAB introduced new routes to destinations like Male in Maldives, Da Nang in Vietnam and Chiang Mai in Thailand, as well as resumed flights to Kolkata.
According to MAG these strategic moves highlight MAB’s ongoing efforts to expand its network and strengthen its presence in the region.
Meanwhile, other non-airline business segments within MAG, such as MAB Kargo and AeroDarat Services, showed a positive performance. MAB Kargo, the Group’s cargo division, posted higher operating profits due to increased capacity and better load factors.
It adds that similarly, AeroDarat Services, the ground handling division, tripled its operating profit, benefitting from a higher volume of flights handled.
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According to statement, MAG’s success is also reflected in its ability to navigate post-pandemic recovery and manage fleet and network expansion. Despite the capacity cuts, the Group maintained a strong cash balance of USD 675.6 million without any capital injections from its majority shareholder, Khazanah Nasional Berhad, since October 2021.
It adds that this financial stability has allowed the Group to continue its strategic investments, particularly in fleet modernisation.
It further adds that looking ahead, MAG is focused on expanding its international network and fleet. The Group’s ambitious plans include operating a modernised fleet of 55 narrowbody aircraft by 2030, comprising Boeing 737-8 and 737-10 aircraft, which will enhance its operational efficiency.
The statement adds that MAG has also begun integrating the A330neo into its long-haul network, with two of these aircraft already in service and more to follow. This fleet upgrade will allow the airline to cater more effectively to both domestic and international markets.
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It adds that MAG’s commitment to sustainability and growth is evident not only in its airline operations but also in its non-airline businesses. The Group’s training arm, MAB Academy, is set to complete a new simulator building by mid-2025, bolstering its capabilities as a regional aviation training provider.
It further adds that MAB Engineering Services is addressing workforce shortages and preparing for increased demand with the expansion of its maintenance facilities, including the new Hangar 4 in Subang, set to open in 2026.
According to statement Datuk Captain Izham Ismail, Managing Director, MAG highlighted MAG’s strategic positioning for long-term growth, emphasising the Group’s focus on both commercial sustainability and contributing to Malaysia’s economic development. As part of its Vision 2030, MAG plans to continue investing in its fleet, expanding its network, and enhancing its non-airline businesses to ensure future stability and competitiveness.
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