MAG records net profit of RM54 million, three consecutive years of positive performance
17/04/2025
MAG records net profit of RM54 million, three consecutive years of positive performance
Malaysia Aviation Group (MAG) recorded a net profit after interest and tax (NIAT) of RM54 million for the financial year ended December 31, 2024. -File photo
KUALA LUMPUR: Malaysia Aviation Group (MAG) recorded a net profit after interest and tax (NIAT) of RM54 million for the financial year ending December 31, 2024.
This marks the third consecutive year that the national airline has recorded a positive operating profit of RM113 million.
The performance was supported by strong earnings before interest, tax, depreciation and amortisation (EBITDA) of RM788 million.
However, the net profit of RM54 million showed a decrease compared to the RM766 million recorded in the financial year ending December 31, 2023.
According to MAG Group Managing Director, Datuk Captain Izham Ismail, MAG continues to record positive performance despite facing an 18 percent capacity reduction in its network in the fourth quarter of 2024.
The reduction, he said, involved a total of 6,388 flights and affected one million customers.
"The Group maintains a strong cash balance of RM3.0 billion as at 31 December 2024, without any capital injection from its major shareholder, Khazanah Nasional Berhad, since October 2021.
"This capacity reduction, due to supply chain disruptions that extended maintenance periods and delayed deliveries of new aircraft, implemented during a typically strong quarter, impacted the group's annual revenue of RM13.679 billion.
"It is a marginal decrease of one percent compared to the previous year, despite a six percent increase in available seat kilometers (ASK) capacity.
"However, passenger traffic remained strong in the premium segment with higher load factors for both the passenger and cargo segments," he said in a press conference on MAG's financial performance here on Thursday.
Apart from that, he said, the group's net profit was also supported by the reversal of depreciation on right-of-use assets, aircraft, property, plant and equipment and intangible assets totaling RM426 million.
The depreciation was due to the COVID-19 pandemic in 2020, but was reversed following the increase in capacity, revenue, load factor, and average seat revenue achieved throughout the 2023 and 2024 financial years.
The group is also expanding its international network through new routes and deep strategic collaborations, he added.
"Tomorrow, we will welcome the arrival of our third Airbus A330neo aircraft and seven more are expected to join the fleet this year.
"We are also continuing to assess the needs of our wide-body aircraft fleet, in line with market developments and exploring all available options to ensure we are best positioned for future growth," he said.