Malaysia Airlines Announces Financial Result For Period Ended 30 September 2001

Malaysia Airlines today announced that it registered a RM 772.8 million loss after tax for the six months ended 30 September 2001 as compared to a RM398.0 million loss during the corresponding period last year.

The higher loss was mainly attributed to the strengthening of the Ringgit against other currencies, which translated to a reduction of around RM161 million in revenue for the Group. In addition, the profit from the sale of aircraft and engines for the period under review was only RM18.6 million when compared to RM235.7 million recorded during the same period last year.

During the period under review, Malaysia Airlines’ Group turnover declined by 6.2% to RM4.261 billion as compared to RM4.541 billion for the corresponding period last year. The Group expenditure decreased by 2.1% to RM5.116 billion for the six months through various efforts of cost containment. The main decreases in expenditure were in ground handling, commissions and fuel.

In a statement issued to KLSE, Malaysia Airlines said that the Group capacity and traffic declined by 1.5% and 1.6% respectively as compared to the same period last year. The overall load for the period under review remained at 65.1%, similar to the same period last year with passenger and cargo load factors of 66.8% and 56.0% respectively amidst the weak market sentiment.

On the domestic operation, the 51.8% fare increase on routes within Peninsular Malaysia effective 01 August 2001 will improve contribution to the Group’s revenue. Malaysia Airlines will continue to monitor passenger and cargo opportunities and will respond by matching its capacity to fulfill the demand while pursuing new opportunities on profitable routes.
As a result of our recovery plan announced in July, the Company has experienced initial improvements in its operational performance. Nevertheless, Malaysia Airlines will continue to monitor its turnaround plan to accommodate the highly dynamic and volatile environment.