Malaysia 1Q losses slightly improved; plans to raise $800 million in Islamic bonds
Published: May 25, 2012
Malaysia Airlines A380. Courtesy, Airbus
Malaysia Airlines (MAS) reported a first-quarter after-tax loss of MYR171 million ($ 54.3 million), slightly improved from a MYR242 million loss for the same period last year.
MAS said the improved results were “despite higher jet fuel price averaging $ 135 per barrel during the quarter compared to $ 120 per barrel in the previous year,” according to a statement.
Total Group revenue stood at MYR3.11 billion while overall operating expenses were MYR3.42 billion, producing a first-quarter operating loss of MYR307 million.
“We were able to achieve a lower net loss for the first three months of 2012 compared to the previous year because we made some tough decisions per our business plan. We cut unprofitable routes especially in long haul where yields were low,” MAS CEO Ahmad Jauhari Yahya said in a statement. “On the cost side, we lowered our fuel bill with improved consumption as a result of newer fuel-efficient aircraft,” he added.
Separately, MAS announced details of plans to raise up to MYR2.5 billion ($ 800 million) in Islamic bonds, which it hopes will stabilize its beleaguered balance sheet.
It also plans to lease six new Airbus A380s and two new A330s, valued at MYR5.3 billion, from an external entity. “Five of the aircraft would be delivered in 2012, where the first two aircraft are to be delivered by end May and another three are to be delivered in the second half of 2012. The remaining three aircraft would be delivered in early 2013,” MAS said in a statement.