The chairperson of Malaysian Airline System Bhd said today the national carrier may return to profit earlier than expected due to an improved performance and based on the trend of its quarterly results.

"We've been able to contain the quantum of loss and we see that this trend will continue... (barring any) unexpected events, based on the present trend and the present conditions, Malaysia Airlines will certainly be in the black earlier than projected," Azizan Zainul Abidin said at a briefing after the company's annual general meeting.

Managing director Mohamad Nor Yusof, who was also present, said the carrier was however maintaining its official projections of a net profit of RM94.2 million for the year to March 2003.

"Our forecast is still on track," Mohamad Nor said, adding that the second quarter results, which will be released very soon, will provide a clearer indication of the company's progress.

Azizan also said he expects MAS' minority shareholders to approve the company's restructuring plan at an extraordinary general meeting to be convened later.

"The shareholders are generally supportive of the restructuring plan... there was no objection (at the AGM) to the scheme as proposed," he said.

Aircraft transfer

MAS has proposed a corporate structure by transferring 73 aircraft to a government vehicle, Penerbangan Malaysia Bhd (PMB), and then lease back the aircraft from PMB.

The restructure would also involve the transfer of financial effects of the domestic airline operations but MAS would continue to operate the domestic airline service on behalf of PMB.

MAS also proposes to sell its non-core assets and businesses, which includes a 70 percent stake in MAS Catering Sdn Bhd and property assets.

As for concerns at rising fuel costs, Mohamad Nor said MAS hedges some 40 percent of its fuel requirements and the present hedging would cover the airline until the end of March next year.

"(The oil situation) is still very fluid... we are watching it closely," Mohamad Nor said.