Flag carrier Malaysia Airlines continued its flight to recovery by logging a net profit of RM330.40 million (US$87 million) in the quarter to December.

This compared to a loss of RM310.20 million in the same period last year, and was its second consecutive quarterly profit since April-June 1997.

In a statement to the stock exchange late yesterday, it said performance was boosted by exceptional gains of RM229.40 million from its financial restructuring and RM74.80 million from sale of a Boeing 747-400 aircraft.

For the quarter, the national carrier made an operating profit of RM32.30 million, rebounding from a loss of RM323.80 million in the same period a year earlier. Revenue rose 9.6 percent to RM2.16 billion.

The results took Malaysia Airlines net profit for the nine months to December to RM250.70 million, compared to a net loss of RM867.80 million in the same period a year earlier.

Challenging months ahead

Sales rose almost eight percent to RM6.72 billion but total expenditure fell by RM183.50 million, thanks to lower fuel cost, depreciation, aircraft maintenance and overhaul, and finance charges.

Overall load factor grew 6.3 percent to 68 percent, with a passenger and cargo load factor of 67 and 72 percent respectively.

Despite the rosy figures, Malaysia Airlines said the operating environment in the coming months would be challenging and fraught with uncertainties amid a looming US-led war against Iraq.

"However, our continued focus o­n deploying capacity within the Asian region may partially cushion any adverse impact," it said.

The carrier has entered into various fuels hedging deals to mitigate any price volatility between November and March.

Malaysia Airlines, which had suffered successive losses since the 1997 regional economic crisis, targeted a net profit of RM94.20 million for the financial year ending March 2003 following a revamp after the government renationalised it in February 2001. AFP