Malaysia Aviation Group (MAG) has announced impressive financial results for the second consecutive year, demonstrating a robust comeback with a 64% increase in operating profit to RM889 million. This achievement marks a significant milestone for the Group, which has maintained a strong cash balance of RM4.3 billion for the past 27 months, despite no capital injections from its main shareholder, Khazanah Nasional Berhad, since October 2021.
In a notable turnaround, MAG recorded its first-ever net profit after interest and tax (NIAT) for the full financial year 2023, amounting to RM766 million, compared to a loss of RM344 million in the previous year. This remarkable performance can be attributed to several factors, including increased passenger traffic and capacity, improved load factor averaging 77%, and a 22% improvement in EBITDA to RM1.97 billion.
The Group’s main airline, Malaysia Airlines Berhad (MAB), saw significant growth in operating profit, reaching RM1.099 billion from RM80 million in 2022, driven by higher capacity and robust yield amid strong passenger demand. Despite challenges such as higher operational and labour costs, currency fluctuations, and supply chain disruptions, all business segments within the Group witnessed year-on-year improvements.
MAG’s aviation services, including MAB Kargo Sdn Bhd and MAB Engineering Services Sdn Bhd, also contributed to the positive performance, although MAB Kargo faced challenges due to softening freight cargo demand and increased market competition.
Commenting on the results, the Group Managing Director of MAG, Datuk Captain Izham Ismail, expressed optimism about the Group’s trajectory towards success. He highlighted the Group’s commitment to innovation and enhancing customer value proposition, emphasizing investments in fleet modernization and service excellence.
With a focus on enhancing premium service offerings and fleet expansion, MAG is set to integrate 12 new aircraft into its fleet in 2024, aiming to operate a fleet consisting of 50 narrow-body and 50 wide-body aircraft by 2033. As the aviation industry continues to evolve, MAG remains steadfast in its commitment to delivering exceptional experiences to its valued customers while ensuring financial stability and sustainable growth.
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