The government today criticised national carrier Malaysia Airlines for its recent heavy losses and urged the new management team to revive the fortunes of the national carrier.

"We are not happy with the performance although we know that there are reasons," said Transport Minister Chan Kong Choy.

Malaysia Airlines on Monday posted one of its worst quarterly losses, going RM280.66 million into the red in the three months to June, from a profit of RM26.58 million a year ago.

The loss, which it blamed on rising fuel costs, was paired with the news that managing director Ahmad Fuaad Dahalan, 55, had resigned.

No reason was given but his departure after just over a year into the job fueled speculation it was related to the company's poor performance.

Chan said that a new management team at the carrier had a "heavy responsibility" to turn the company around.

"They have a very heavy task to perform and turn around amidst this background of very high jet fuel prices," he told AFP .

Other airlines doing okay

Although Malaysia Airlines has blamed rising oil prices for its poor performance, analysts said that the hikes were not the only reason, pointing also to the carrier's high overheads.

"All airlines in the world are having difficulties with increasing fuel prices," Avenue Securities research head Noor Azwa Mohamad Noor was quoted as telling the New Straits Times today.

"However, what kept airlines such as SIA (Singapore Airlines) and Cathay Pacific in the black were their operational efficiencies," he said.

Malaysia Airlines chairman Munir Majid has announced an ambitious five-year plan to boost profits by up to RM1 billion, including shaking up the management and restructuring the organisation to enhance its bottom line.

"We aim to save up to 200 million ringgit in cost savings in the first six months," he said Monday, adding that the savings could be wrung from further fuel efficiencies and better yields.