Malaysia Aviation Group reports $12 million net profit in 2024

KUALA LUMPUR : Malaysia Aviation Group, the parent company of Malaysia Airlines, on Thursday reported a net profit of 54 million ringgit ($12.24 million) for its 2024 financial year.

Malaysia Airlines has struggled to recover from two deadly disasters in 2014, and last year temporarily reduced its flight capacity by 18 per cent after it was investigated by Malaysia’s civil aviation authority, which found several significant safety and maintenance issues.

“Despite the capacity cuts, passenger traffic remained robust in the premium segment with stronger load factors from both passengers and cargo segment,” MAG managing director Izham Ismail told a media briefing.

MAG said the capacity cuts in the fourth quarter of 2024 were driven by supply chain disruptions that extended maintenance times and delays in new aircraft delivery.

Malaysia Airlines was delisted in 2014. Sovereign wealth fund Khazanah Nasional then took over ownership of the restructured parent company, MAG.

In 2023 MAG reported its first net profit after interest and tax since the 2015 restructuring.

MAG has been steadily growing and renewing its fleet.

Last month it said it would buy 18 737 MAX 8 and 12 737 MAX 10 aircraft from Boeing, with an option to purchase a further 30 jets.

Izham said MAG was committed to renewing its aging fleet, but that operational disruptions remained a challenge.

“Global supply chain disruptions and delivery delays have impacted the pace,” he said.

The MAG group includes Malaysia Airlines, short-haul airline Firefly, and pilgrimage airline Amal.

($1 = 4.4110 ringgit)