Malaysia Aviation group posts RM54 million profit despite Q4 disruptions
Malaysia Aviation Group (MAG) has reported a positive net profit after interest and tax (NIAT) of RM54 million for the financial year 2024. This marks the Group’s third consecutive operating profit, with an operating surplus of RM113 million and EBITDA at RM788 million, even as it battled operational setbacks in the last quarter.
MAG’s resilience was tested by supply chain disruptions, extended aircraft maintenance times, and delays in new aircraft deliveries. These challenges led to an 18% capacity cut in Q4, traditionally a peak travel period, reducing annual revenue slightly to RM13.7 billion, a 1% year-on-year dip, despite a 6% rise in Available Seat Kilometres (ASK).
The Group’s load factor improved to 80%, up 3 points from 2023, showing strong passenger demand, particularly in the premium segment.
Financial boost from asset reversals
MAG’s net profit also benefited from a RM426 million impairment reversal, covering assets previously written down during the 2020 pandemic. The turnaround reflects improved metrics in capacity, yield, and passenger traffic across 2023 and 2024.
Airline segment performance: mixed outcomes
Malaysia Airlines Berhad (MAB) posted a reduced operating profit of RM139 million, a sharp drop from RM1.09 billion in 2023. The decline was due to lower passenger yield and Q4 disruptions. Still, MAB’s annual capacity rose 7%, with a 17% increase in passengers and an improved 81% load factor.
MAB introduced new routes to Male, Da Nang, and Chiang Mai, and resumed services to Kolkata. However, on-time performance only improved marginally due to aircraft constraints.
Meanwhile, Firefly’s losses widened, as its new jet operations from Subang Airport struggled with falling yields, despite a 10-point rise in load factor.
Amal by Malaysia Airlines, the Group’s Hajj and Umrah unit, showed a 36% improvement year-on-year.
Non-airline segment: cargo and ground handling lead
The Group’s cargo arm, MAB Kargo, delivered higher profits backed by improved load factors in both belly and freighter cargo.
AeroDarat Services saw operating profit triple, driven by growth in ground handling for foreign and Group airlines.
MAB Academy reported improved financials, while MAB Engineering Services faced hurdles due to manpower shortages.
Industry recognition and global accolades
MAG earned multiple global awards in 2024. Malaysia Airlines secured APEX Four-Star Major Airline status and ranked among Skytrax’s Top 10 Cabin Crews. It also climbed from #47 to #39 in the World’s Best Airlines rankings.
The airline also gained praise for its new “Best of Asia” in-flight dining and continued success of its Enrich loyalty programme.
Looking ahead: destination 2030 in focus
Group Managing Director Datuk Captain Izham Ismail reaffirmed MAG’s strategy of “commercial sustainability and nation building.”
MAG plans to modernise its fleet, targeting 55 new Boeing 737 aircraft and expanding its A330neo long-haul fleet. Two A330neos are already in service, with eight more expected in 2025.
MAG will also resume flights to Paris in March 2025, boosting its European network. Forward bookings are up 9% year-on-year, especially in ASEAN, Australia, New Zealand, and South Asia.
Key investments are underway to support this growth:
- A new flight simulator building at MAB Academy by Q2 2025
- Hangar 4 in Subang to enhance maintenance capacity by Q1 2026
- MCAT West facility to support in-flight catering expansion
These moves will strengthen MAG’s position as Malaysia’s aviation leader, while generating employment, boosting connectivity, and driving economic growth.
