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  • 7 weeks ago
Malaysia Aviation Group, the operator of national carrier Malaysia Airlines, reported higher profits in 2025 but warned on Thursday (April 2) that Middle East tensions and market volatility could impact performance this year.

MAG president and group chief executive officer Nasaruddin A Bakar said geopolitical uncertainties continue to affect capacity, supply chains, and cost structures, but travel demand remained strong, particularly from India and China and on routes to Australia, New Zealand, and Britain.

Nasaruddin said MAG's airlines, which also include low-cost carrier Firefly, were actively reviewing and adjusting fares, adding that the company is estimated to see a financial impact of RM50mil on every dollar increase in oil prices.

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Transcript
00:00Things have changed a lot as you know and the fuel price before this was
00:05hovering close to about $100 sink jet fuel. However in the last one month the
00:10fuel price has increased more than 140 percent. It has reached to a peak close
00:15to $240 sink jet and for our scale of business ladies and gentlemen the impact
00:20to us is approximately about 50 million ringgit for every dollar that it has
00:25increased. Yeah but having said that we're quite okay in the context of the
00:30Forex. Forex has been quite stable comparatively to the USD. However in the
00:36last few days it has increased and to give context again and every 10 cent of
00:41movement in Malaysia ringgit into the US dollar it will impact Malaysia Evision
00:46Group at a bottom line about 200 million ringgit on every 10 cents. As you know
00:54when the crisis happened in the Middle East not only on the fuel price has
00:59increased but it's impacted us as a group and also as an airline. One of the
01:04key factors that has impacted Malaysia Airlines is of course on the fuel price.
01:08Having said that today since we're flying to the Europe from Malaysia from this
01:13part of the world our sectors and our flight routing have increased to
01:17approximately an additional one hour and today as we are flying into London and
01:23also Paris with that one hour additional it has increased of
01:27approximately about 18,000 kilogram fuel burn daily for Malaysia Evision Group and
01:32approximately about hundred and fifteen thousand ringgit daily right. Today because
01:38of the closure of certain airports and also certain airspace in our the Middle East
01:42stations we have continued to suspend our or cancel our flights into Doha at this
01:49point of time up to 15 of April and today we're doing two times Doha and that has
01:54also impacted our top-line revenue in particular flying to Doha but our Jeddah and
02:00Madinah has been flying as per normal we had cancelled our flight to Jeddah Madinah at the
02:06about first five days during the war started. One other thing that I wanted to highlight is not just about
02:12the fuel cost and also the additional routing. More importantly is also about the fuel supply.
02:18So members of the media there are certain states or certain countries that we fly into have
02:23raised certain concern about the fuel supply. Thank God in Malaysia we're still quite stable in that
02:29sense but having said that we're seeing some syndication that there will be other
02:34countries will may have issues with regard to fuel supply. So what we're doing today is trying to
02:40optimize our fleet efficiency to fly the the newer aircraft as much as we can so that we're able to
02:47contain a fuel efficiency as as best as we can. So first and foremost with that as I said just
02:53now we
02:53will continue review and adjust and it is always about the demand right and today we're seeing demand
02:59are pretty strong. Tomorrow we'll be announcing other sectors that we will announce there will be three
03:03other sectors that will be announced and in the likes of north and south China and India has been very
03:08strong. Demand from these two regions are still very strong and we believe to support visit Malaysia
03:14here provided we are able to ensure that the P&L or the financial performance is positive we will
03:20continue to grow and we will continue to fly to all these sectors accordingly so that's number one. Number two
03:25you
03:25ask about the the focus how is going to be look like the look of the company fuel cost is
03:3240% Norman of
03:34the organization so we are doing our level best to ensure that we are able to mitigate the height of
03:39the fuel cost through the maximizing of our yield our revenue and and and our fair pricing right and it
03:46has
03:46to be competitive so that's very important whether we're going to end positive that's another thing
03:51because today and compared to yesterday the fuel prices changed to more than 20 dollars right maybe
03:56tomorrow is going to increase another 20 dollars so it's so volatile but we at our as a group we
04:01are
04:02ready and we are prepared in terms of our people and we need to ensure that the products and our
04:07assets
04:07are ready to fly to the sectors if there is a demand
04:21so
04:21you
04:21you
04:22you
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