Malaysia Airlines has reported its third consecutive quarterly net profit as a major restructuring effort continued to yield results.

The state-owned carrier said net profit in the first quarter was RM132.71 million compared with a net loss of RM321.12 million for the same period a year earlier.

Malaysia Airlines said it had beaten its full-year net profit target of RM50 million. The revised target is RM300-700 million net profit, the airline's managing director, Idris Jala, said.

"We had a really good quarter," he said.

Revenue was up 21 percent to RM3.58 billion during the quarter, due to higher passenger revenue, the company said.

But Jala told reporters there was still a long trek ahead.

"We've only just arrived at base camp. There is so much more to do."

Under the turnaround plan that took effect last year, the airline axed unprofitable routes and signed code-sharing agreements and partnerships.

It also embarked on a cost-cutting exercise and began laying off thousands of employees in a voluntary separation scheme.

All but 19 major domestic routes were surrendered to budget carrier AirAsia, while it overhauled its reservations system for greater efficiency and introduced an aggressive new fare scheme.

Positive outlook

As part of the airline's renewal, Jala said it would replace its entire fleet by 2014 and planned to order up to 110 narrow and widebody aircraft.

"We will have a mixture of aircraft that we purchase and own and others which we will lease," he said. "We want to gradually phase out our existing fleet. In the year 2012 or 2014 we'll complete the disposal of our existing aircraft."

Jala said the outlook remained "very positive overall" for Malaysia Airlines.

"In as long as we are a company that pursues a relentless approach to cost reduction, we'll be able to find our place in the sun," Jala said.

He confirmed that, beginning in October, the carrier was planning to take back rural air services from its rival budget carrier, Fly Asian Xpress Sdn Bhd, in eastern Sabah and Sarawak states on Borneo Island.

Jala said the routes would not be operated by its new low-cost, wholly-owned subsidiary, FlyFirefly Sdn Bhd, but by a separate subsidiary.