Malaysia Airlines saw a turnaround in its fortunes in the July-September period as it continues its quest for profitability.
The carrier made a pre-tax profit during the third quarter of £8 million compared to a loss of £94 million in the same period last year. The positive result comes after six consecutive quarters of losses.
The airline still looks to be heading into a loss for the current financial year, but this will be reduced from last year’s deficit. In the year to date, Malaysia Airlines has lost almost £98 million. compared to £247 million in the same nine months in 2011.
Figures in the third quarter were helped by a fall in the average price of fuel from $137 a barrel to $131 and from decreased consumption due to the axing of some routes. The airline said the remainder of 2012 was “challenging”.
“Fuel prices continue to remain high, competition as a result of excess fleet capacity remains, and there is still economic uncertainty in the Eurozone, US and China markets,” it said.
A cost-cutting programme is underway, including fleet renewal, which sees the introduction of the airline’s fourth Airbus A380 this week. The carrier’s entry into the oneworld alliance in February next year will also improve matters.
See our interview with Malaysia Airlines’ Dean Dacko here.
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