Flag carrier Malaysia Airlines today reported sharply improved results for its second quarter and first half on the back of improved passenger traffic and stronger cargo operations.

The carrier said the results would have been better had it not been for rising fuel costs, which boosted overall costs by 29 percent in the six months to September.

"The results continue to highlight the successful execution of the business plan and the airline's ability to grow and improve yields while managing operating costs," said managing director Ahmad Fuaad Dahalan.

The airline said its second quarter or three months to September net profit rose to RM132.70 million from RM101.07 million a year earlier on revenues of RM2.77 billion against RM2.18 billion.

For the first half, the carrier had a net profit of RM159.29 million on revenues of RM5.21 billion against a net loss of RM63.45 million on revenues of RM3.85 billion.

Maintain regional dominance

The airline said its network strategy remains focused on maintaining regional dominance and expanding the China and India markets.

Malaysia Airlines said the company's long haul markets also remain important and the company would continue to strengthen its position.

It made no specific forecast but said its results would continue to be affected by fluctuations in interest and exchange rates as well as high fuel prices.

The airline also said it would spend RM700 million over the next 18 months to upgrade its fleet of Boeing 777s and 747s.

The carrier said it would upgrade 17 Boeing 777s and 15 Boeing 747s to enhance its appeal to the business market and improve its premium seat capacity, while adding two 747 freighters to its cargo fleet in 2006.