MAS bleeds cash as operational costs surge

MALAYSIA Airlines (MAS) reported a loss of RM1.28 billion (US$427 million) for the fourth quarter ended December 31, 2011, bringing the group’s net financial deficit to RM2.52 billion for the entire year.

“The bottom-line group losses for 2011 underscore the imperative need for MAS to immediately adopt strong measures to stop the bleeding,” said MAS group CEO, Ahmad Jauhari Yahya.

“These include staff redeployment, increasing productivity and efficiency, relentless cost control and making further route reviews. We are (also) implementing an aggressive sales and marketing strategy.”

MAS’ full year results for 2011 come on the back of a two-per cent rise in group revenue and 1.3 million increase in passenger numbers handled compared to the year before.

However, performance was impacted by a 21-per cent hike in expenditure over the previous year, attributed to 33 per cent and 15 per cent year-on-year increases in fuel cost and non-fuel expenses, respectively.

“The accounts for the year under review recognise provisions and escalating operational costs which although painful, give us a holistic snapshot of the organisation,” said Ahmad Jauhari.

“With full knowledge of our actual position, we will be better prepared to move forward,” he added.

Reporting by N. Nithiyananthan

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