Malaysia Airlines said today it has returned to the black with a full year net profit after five straight years of losses.

The national carrier posted a net profit of RM339.10 million for the year to March, with sales rising to RM8.67 billion from RM8.38 billion the year before.

However the company warned it is not out of the woods yet because the Severe Acute Respiratory Syndrome (Sars) outbreak and the Iraq war had hit its revenue in the new financial year.