MAS posts losses for second consecutive quarter

MALAYSIA Airlines (MAS) and AirAsia reported contrasting figures for their second quarter financial results ended June 30, 2011.

MAS recorded a second consecutive quarter of losses. Its RM526.7 million net loss for the quarter was more than double its RM242.3 million loss in 1Q2011. Revenue as of June 2011 was higher by 8.7 per cent at RM3.49 billion, compared to RM3.21 billion a year ago.

In a statement, MAS said the Board did not anticipate making a profit for the second half of 2011, although the expected losses would not be as severe as for the first half of 2011.

MAS is anticipating its forward bookings to Europe, the US and Japan markets to pose a challenge, while a normal trend was expected for regional destinations.

MAS will continue with its fleet renewal exercise. Following the delivery of five new Boeing 737-800s and five new Airbus A330-300s as of mid-August, there remains a firm order for 38 737-800s, 10 A330s, six A380s and two A330 freighters.

In comparison, AirAsia increased its revenue by 15 per cent year-on-year to RM1.1 billion for 2Q2011. Its profit before tax of RM145.0 million was up 0.6 per cent year-on-year. However, net profit fell by 48 per cent to RM104.3 million, from RM198.9 million a year ago, in the face of rising fuel prices and costs, as well as economic uncertainty.

In a statement, AirAsia Group CEO, Tony Fernandes, said: “The second quarter is traditionally one of our weaker quarters. But despite the challenging environment in the industry…, we’ve grown revenues, our cash balance is a healthy RM1.9 billion, and our gearing level has been reduced to 1.48 times as compared to 2.27 times a year ago.”

AirAsia’s revenue from ancillary services in Malaysia increased by 15 per cent year-on-year, amounting to an income of RM50 per passenger.

By N. Nithiyananthan

Sponsored Post