Malaysia Airlines said its first quarter to June net loss widened to RM164.51 million from losses of RM80.80 million in the same quarter a year earlier, reflecting the impact of the outbreak of Severe Acute Respiratory syndrome (Sars).

"The effect of Sars was dramatic on operational and financial performance. We were hurt but managed to control the damage," managing director Mohamad Nor Yusof said in a statement.

Total passengers carried by Malaysia Airlines shrank 22 percent to 3.12 million passengers during the quarter from 3.99 million carried in the same quarter last year.