National carrier Malaysia Airlines said today its net profits had fallen in the fourth quarter as a result of fuel hedging losses, despite improving passenger numbers.

In a filing with the local bourse, the airline said its net profit for the period fell to RM226 million (US$74.05 million) from a restated RM640 million for the same period last year.

malaysia airline mas aircraft The carrier said it had made an operating profit of RM137 million during the quarter, a RM108 million improvement on the same period last year, due in part to a five percent rise in ticket sales.

It said load factors - what percentage of seats are occupied on each flight - had also risen.

For the full year, the national carrier said its net profit fell to US$234 million compared to US$520 million the previous year.

Chief executive officer Azmil Zahruddin told Dow Jones Newswires the airline is in the midst of an expansion in line with the upturn in the industry.

However, he warned that higher fuel prices, intensifying competition and unrest in the Middle East were challenges.

“We are vulnerable to many things beyond our control which can quickly have an impact on the business,” he said.

Last November, the airline said it was back in the black in its third quarter, with a profit of RM233 million in the three months to the end of September. That came on the back of a RM535 million loss in Q2.

- AFP