Malaysia Airlines sees progress on turnaround plan

Malaysia Airlines sees progress on turnaround plan

Malaysia Aviation Group has shown continued progress over quarter two of 2016, as steady progress on a turnaround plan continues.

In a seasonally weaker quarter, MAB continued to show steady progress on the turnaround plan costs remained a central focus with the airline delivering ahead of budget.

On-time-performance also remained stable amid external challenges and the airline’s customer service index continued to recover as product improvements were introduced in the quarter. 

Malaysia Aviation Group chief executive 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. 

“The focus so far has been on managing costs and continuing the product improvements in food, on time performance and new business class seats. 

“In the second half of 2016 we are working hard on revenue generation with more aggressive marketing and sales initiatives whilst maintaining strict cost discipline.

“We need to move quickly to maximise revenues and I am confident with the steady progress seen that we will succeed.” 

As expected, the second quarter was weaker due to seasonality with revenue down quarterly due to soft demand during Ramadan. 

The group carried 3.3 million passengers during the quarter.

Overall, the airline and the group are expected to record a loss for this fiscal year but management remain confident that both will meet and potentially surpass targets based on the traction gained in the turnaround efforts thus far.

While overall load factor was weaker, domestic travel loads improved. 

The airline and Group continued to make progress on cost reduction which will remain a key focus.