Published on : Wednesday, March 1, 2017
On the back of higher bookings and driven by a greater focus on the premium business traveller as well as all-inclusive economy fares, Malaysia Airlines Bhd recorded a stronger performance in the fourth quarter (Q4) of last year.
Malaysia Aviation Group Bhd Chief Executive Officer Peter Bellew said passenger load factors improved in Q4 last year to 81 per cent year-on-year from 70 per cent in Q4 of 2015, achieving 90 per cent in the month of December 2016.
On the performance of subsidiaries, Bellew said low-cost carrier, FireFly, had reduced its operational fleet to 12 aircraft from 18 in Q4 of last year to address financial losses.
On outlook, he said Malaysia Airlines remained cautious for the fiscal year 2017 on the back of overcapacity in the Malaysian market and a potential price war that would make it a challenging one.
He said yields are expected to decline in the second half of the year due to irrational competition, but the airline’s focus would be on reducing costs to maintain its financial position.
“We remain focused on cost control and have identified a further RM400 million in cost reductions this year to offset US dollar strength,” he added.
“Across the group we expect to carry over 17 million customers in 2017 and we see an opportunity to grow our position as a five-star full service airline into 2018 with confidence,” Bellew said.
He said the airline would continue to offer great value on all-inclusive business and economy fares, while most carriers around the world continue to add extra charges and unbundle their fares.
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