Malaysia Airlines Reports Profit for First Quarter

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Malaysia Airlines issued on Monday (28 May) its financial results for the first quarter ended 31 March 2007.

The company made a net profit of MYR133m for the three-month period, an increase from the loss of MYR321m in the first quarter a year ago. The improvement was attributed to the company's Business Turnaround Plan initiatives.

Malaysia Airlines had previously set a target of a net profit of MYR50m for the whole of 2007, and now expects a profit of MYR300m to MYR700m for the year.

Revenue in the first quarter totalled MYR3.6bn, a rise of 21% from MYR3bn in last year's first quarter, driven by a 21% increase in passenger revenue.

Cargo revenue declined by 4% to MYR534m from MYR556m due to the reduction in cargo space which has resulted from the airline's route rationalisation.

Also on Monday, Malaysia Airlines said that it was planning to order around 110 new aircraft as it replaces its fleet over the next seven years. The airline is hoping to acquire about 55 wide-bodied long-range aircraft and 55 narrow-bodied medium-range aircraft, Reuters reported.

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