Malaysia Airlines has posted a second straight quarterly loss for the three months ended June 30th.

The flag-carrier reported a loss of $178 million) in the April-June quarter, down from a loss of $180 million a year earlier.

The carrier – which recently linked up with AirAsia in an attempt to stem losses - warned it expects to stay in the red for the rest of the year due to soaring fuel costs.

Malaysia Airlines said revenue rose to $1.3 billion in the second quarter.

However, fuel costs shot up 41 per cent to $522 million.

The airline said it does not expect to make a profit for the second half of the year but losses will not be as severe as in the first six months.

Last year Malaysia Airlines was recognised as the World’s Leading Airline to Asia by the World Travel Awards.