Malaysia Airlines records improved yields in 1Q2018

Malaysia Airlines Group (MAG) CEO Izham Ismail stated (08-Jun-2018) the carrier reported a 6.6% increase in yield to MYR 22.6 sen (USD 5.67 cents) in the three months to 31-Mar-2018, explaining: "Our performance is on budget for quarter one and the concerted focus on yield, which began in the second half of the previous year, continues to see results with an overall improvement in yield and RASK". Revenue per available seat kilometre (RASK) increased 3.5% year-on-year, outpacing total revenue growth of 2%. Mr Ismail added: "I am heartened by the relatively encouraging first quarter of 2018, especially after a challenging FY2017 which saw the company underperform against budget. Our performance last year was hampered by an adverse exchange rate swing which saw the depreciation of the ringgit against the US dollar (USD). With more than 50% of our cost structure in USD, the depreciation had a significant impact on the company's overall financial performance. Nevertheless, taken on aggregate, the company has made progress on the execution of the Malaysian Airlines Recovery Plan (MRP). This includes an improved cost base for the airline, bringing it in line with its peer network airlines". He however noted that the carrier is preparing itself for a tough year ahead with competition and exchange rate volatility. He said escalating fuel prices remain a particular concern, up almost 100% from early 2016. "Moving forward we will continue to drive yield by focusing on the premium segment to cushion the airline from rising costs. Overall, we expect to see improvements in our performance in the later part of this year and against this backdrop, we are working hard to deliver sustained profitability in 2019", he added. [more - original PR]