Malaysian Airline System Bhd, the country’s largest carrier, slumped to a second-quarter loss after betting wrongly on the price of jet fuel.
The net loss totaled RM534.7 million (US$168 million), or 16 sen per share, in the three months ended June 30, compared with a net income of RM874.9 million, or 42.61 sen, a year ago, the national airline said in an exchange filing today. The flag carrier also said it agreed with Airbus SAS for compensation for delays in delivering the super-jumbo planes.
Malaysian Air had paper losses of RM217.2 million on derivatives trading in the second quarter, chief executive officer Tengku Azmil Zahruddin told reporters in Kuala Lumpur today. That masked an increase in passenger numbers, which has prompted the airline to order three turboprop aircraft for its low-fare unit.
“The volatility of the fuel price remains a key challenge for the industry,” Tengku Azmil said.
Revenue rose 26 per cent to RM3.2 billion as passenger numbers returned to pre-crisis levels, the airline said.
ATR Order
Malaysia Air will target an operating profit of between RM100 million and RM523 million this financial year, the company said in the statement. The global airline industry is expected to post its first profit in three years in 2010 after the worst recession in more than six decades hurt travel last year, according to the International Air Transport Association.
The Southeast Asian carrier’s first-quarter net income was boosted by RM329 million in compensation from Airbus SAS for delays in delivering six A380 super-jumbo planes.
Malaysian Air has agreed additional compensation for a further delay, Tengku Azmil said in today’s statement, without disclosing any figure. The first A380 is now expected to arrive in April 2012, it said.
The company also firmed up orders for three additional Avions de Transport Regional aircraft for Firefly, its budget carrier. These planes will be delivered around the end of this year bringing Firefly’s ATR fleet up to 10, Tengku Azmil told reporters, without disclosing a purchase price. -- Bloomberg
