National carrier Malaysian Airline System Bhd announced its net profit for the nine months to December rose 30.1 percent to RM216.90 million on higher air traffic demand.

The carrier said pretax profit rose 39 percent to RM241.85 million on the back of a 30.82 percent rise in revenue to RM8.25 billion.

Traffic demand was expected to continue on an upward trend in view of the favorable economic outlook for 2005, it said.

Malaysia Airlines said short-haul regional travel was likely to gather pace as new low cost carriers expand their operations.

Competition was expected to intensify as airlines continue to take delivery and order more aircraft, it said.

New destinations

The airline said its strategy was still centred on growing markets in China, India and Asean (Association of Southeast Asian Nations) but at a more measured pace than in 2004.

"Additional services and capacity will be added to Mumbai, Hyderabad, Bangalore, Beijing and Singapore in summer 2005, while new points in India and China are planned for winter 2005," it added.

Malaysia Airlines managing director Ahmad Fuaad Dahlan said the airline would make a firm decision within the next few months on which type of aircraft would replace 39 of its narrow-bodied planes.

"By mid-May, we will be more firm in terms of decision-making process," he told reporters.

Earlier, the airline had said it would send out a request for proposals to Boeing and Airbus to replace 39 of its narrow-bodied aircraft.