State-run Malaysia Airlines (MAS) reported strong second quarter results yesterday and said it expected to ring up the highest profit in the company's history this year.

The firm posted a net profit of RM113 million, with sales rising 17 percent year-on-year. The flag carrier lost RM177 million in the same period last year.

"We made good progress, turning an operating profit of RM48 million in the second quarter, which traditionally has been the airline's worst financial period," said Idris Jala, MAS managing director.

The company said sales rose to RM3.55 billion in the three-month period, up from RM3.032 billion in the same period last year.

Jala was optimistic about the carrier's performance.

"I am upbeat about the second half of the year," he said. "It has been traditionally better as air travel peaks during the period."

Historic profits likely

Jala said the airline expects to make the highest profit in the company's history this year, aided by more one-off gains from the sale of aircraft assets.

MAS has set a net profit target of RM300 to RM700 million ringgit for 2007. The highest net profit the company has ever made was RM460 million ringgit in 2003.

The carrier said international routes had turned a profit of RM7 million compared to losses of RM163 million a year earlier, while domestic routes generated profit of RM41 million.

MAS in May reported that net profit in the first quarter was RM132.71 million, compared with a net loss of RM321.12 million in 2006.

For the first half of 2007, MAS made a net profit of RM246 million, compared to a net loss of RM498 million last year. Sales rose to RM7.19 billion, up 19 percent from RM6.05 billion the year before.

The firm's shares closed Monday up 10 sen or 2.1 percent at RM4.80.