Malaysia Aviation Group (MAG), the parent company of Malaysia Airlines, has warned that its operating costs could increase by up to 25 per cent due to global supply chain disruptions and new US tariffs.
MAG managing director, Izham Ismail, said MAG is monitoring cost movements closely, particularly for aircraft components affected by tariffs when shipped from other countries to the US.
“Naturally, there will be cost pressure – the cost of sales will go up, and businesses will pass on the cost to customers,” Izham shared at a recent press conference.
MAG’s concerns stem from the expected rise in aircraft component prices. This increase, coupled with ongoing global supply chain uncertainty, could impact the group’s profitability in 2025.
MAG reported a net profit after interest and tax of 54 million ringgit (US$12.3 million) last year. Despite these challenges, Izham stated that the group does not currently expect any delays to the scheduled delivery of 18 Boeing 737-8 and 12 Boeing 737-10 aircraft, due to begin arriving from 2029.
These new aircraft will be deployed on Asian routes of up to six hours and form part of the group’s fleet modernisation strategy to improve operational efficiency and flexibility across domestic and international markets.
Malaysia Airlines was recently ranked 45th in the Brand Finance Airlines 50 2025 report, published on April 15. Now in its 15th year, the report is the longest-running study of its kind, ranking the world’s most valuable and strongest airline brands.
The airline returns to the list after a decade, emerging as the fastest-growing airline brand with a 209 per cent increase in brand value.
“That is a huge achievement. It has taught us to dream of becoming number one in the world in the future,” Izham said.
