Malaysia Aviation Group achieved positive Operating profit for the second consecutive year at 889 million Malaysian Ringgit (MR), a 64% improvement from MR 540 million in 2022. The cash balance stood at RM 4.3 billion with no capital injections from its main shareholder, Khazanah Nasional Berhad, since October 2021.

The Group also recorded its first-ever net profit after interest and tax (NIAT) of positive RM 766 million for the full financial year 2023 since its inception in 2015, a swing of RM 1.1 billion from a negative RM 344 million the previous year.

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The strong performance was attributed to robust passenger traffic from the premium segment, intensified international network flow, active capacity management, deep partnership collaboration and more robust yield for the passenger segment. These were achieved despite higher operational and labour costs, weaker ringgit (RM), challenges in supply chains due to increasing costs and uncertain delivery commitments, fuel prices, and elevated interest rates.

All business segments across the Group registered a year-on-year (YoY) improvement during the year. Main airline MAB’s total revenue improved by 45% compared to the year before, underpinned by higher capacity, strong demand, and a focus on the international sector for the passenger business segment. Capacity was at 90% of 2019 levels.

In 2023, MAG received more than ten global and industry awards, recognising its excellence in business practices and brand loyalty, including the Finance Team Award of The Year from the Future CFO Excellence Award, the Bronze award for Best PR by an In-House Communications Team from Marketing Interactive’s PR Awards, and the Gold award for Best Membership Program for Enrich from the Loyalty & Engagement Awards 2023.

Remarks by Group Managing Director of MAG, Datuk Captain Izham Ismail, “We are pleased to report that the Group is poised for a remarkable comeback, solidifying our commitment to making 2024 the year of credibility. Bolstered by financial stability, we are well-positioned to reinvest in our cabin’s complex product, enhance our offerings and execute our fleet expansion strategy.

MAG’s performance in 2023 marked a decade-high, showcasing our trajectory towards success. Post the successful financial restructuring in 2021, the Group has achieved significant progress in its LTBP2.0 turnaround plan, achieving positive EBITDA, reduction in fiscal losses, and healthy operational cashflow. This culminated in the Group’s first-ever net profit after interest and tax in 2023 after almost a decade of losses.

As a global aviation group, MAG reaffirms its steadfast commitment to innovation, anticipating the evolving needs of our customers and ensuring adaptive service delivery. Our priority lies in effectively addressing external challenges and proactively responding to the dynamic preferences of our valued customers. The successful migration of catering operations and the establishment of MAG Catering (MCAT) in 2023 exemplify our dedication to service excellence, consistently elevating the onboard experience for our valued guests.

With a steadfast commitment to enhancing the Customer Value Proposition (CVP), we are intensifying our efforts to prioritise cabin comfort, elevate in-flight dining, and enhance onboard cabin services. This strategic focus aims to reinforce Malaysia Airlines’ position as a premium airline. In our pursuit of enhancing premium service offerings, Malaysia Airlines is introducing new services such as the Premier Line and an exclusive luxury private terminal transfer service.

In alignment with our fleet modernisation and growth strategy, MAG will integrate 12 new aircraft into its fleet in 2024. We are optimistic about operating a fleet of 50 narrow-body and 50 wide-body aircraft by 2033.”

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