MAG reports RM54m net profit for 2024

Malaysia Aviation Group (MAG) reported a net profit of RM54 million for 2024 and RM113 million in operating profit.

In a statement today, the group said it achieved robust earnings before interest, taxes, depreciation, and amortisation of RM788 million despite operational headwinds, including network cuts in the fourth quarter of 2024 (4Q FY2024), which reduced capacity by 18 percent.

A statement today said the group’s net profit was further supported by an impairment reversal on the right to use assets, aircraft, property, plant and equipment, and intangible assets amounting to RM426 million.

“These impairments, initially recognised during the Covid-19 pandemic in 2020, were reversed due to improved capacity, revenue, seat factor, and yield experienced in FY2023 and 2024,” the statement said.

The capacity cuts were driven by supply chain disruptions, extended maintenance times and delays in new aircraft delivery. They were carried out during a traditionally strong quarter.

It impacted MAG’s full-year revenue of RM13.68 billion, a marginal 1.0 percent decrease year-on-year (y-o-y) on the back of a 6.0 percent rise in available seat kilometre (ASK).

Profitability maintained

MAG group managing director Izham Ismail said the group maintained profitability and ensured it was strategically positioned despite operational challenges.

“As we work towards our vision Destination 2030, a future of stability and growth, we remain deeply focused on two guiding principles: commercial sustainability and nation building.

“A central element of this strategy is our continued investment in modernising and expanding our fleet,” he said.

Izham said MAG aims to operate a modernised, new generation narrowbody fleet of 55 aircraft comprising the Boeing 737-8 and 737-10 by 2030 to better serve domestic and international markets.

Simultaneously, it is progressively integrating the A330neo aircraft into its long-haul network.

Two aircraft have been deployed on the Melbourne, Bali and Auckland routes, with eight more expected this year, he said.

Robust passenger traffic

MAG’s 2024 passenger traffic remained robust in the premium segment with stronger load factors for passenger and cargo segments at 80 percent against 77 percent in 2023.

Malaysia Airlines Berhad (MAB) posted an operating profit of RM139 million in 2024, a 87 percent decline from RM1.09 billion in 2023, due to lower yield and the impact of capacity cuts in 4Q FY2024.

MAB’s yearly capacity rose by 7.0 percent, with a 17.0 percent rise in passengers carried and a load factor of 81 percent versus 77 percent in 2023. Aircraft constraints impeded its on-time performance with just a 1.0 percent improvement y-o-y.

It also introduced three new destinations: Male in the Maldives, Da Nang in Vietnam, and Chiang Mai, Thailand, and resumed flights to Kolkata, India.

Firefly’s loss widened y-o-y due to jet operations in Subang Airport with a 10-percentage-point rise in load factor y-o-y.

Yield declined by 19 percent due to jet operations from Subang Airport, while Amal by Malaysia Airlines recorded a 36 percent improvement in its financial performance y-o-y.

With forward bookings rising 9.0 percent y-o-y, Izham said MAG’s mainline presence will continue to expand in key markets including Asean, Australia, New Zealand, and South Asia.

“This strategic growth is further complemented by our return to Paris on March 22, 2025, our second European destination,” he added.

Higher operating profit

As for MAG’s non-airline segment, MAG’s cargo division MAB Kargo posted a higher operating profit, supported by additional capacity and a higher load factor.

Load for belly and freighter cargo was 8.0 percentage points and 3.0 percentage points higher, respectively.

Its ground handling solution provider, AeroDarat Services, reported a remarkable improvement in its financial performance, with operating profit up three times on the back of higher flights handled for the group and foreign carrier business segment.

MAB Academy, MAG’s training and development arm, achieved better results than the previous year, while MAB Engineering Services faced challenges due to skilled workforce shortages.

- Bernama

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