May 26 2011, 02:13 AM
KUALA LUMPUR: MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) posted net loss of RM242.34 million in the first quarter ended March 31, 2011 versus net profit of RM310.04 million a year ago due to higher operating expenses mainly due to the increase in fuel costs while other operating income declined.
The national carrier said on Wednesday, May 25 that revenue was RM3.19 billion compared with RM3.30 billion a year ago. Loss per share was 7.25 sen compared with earnings per share of 10.64 sen.
“The group recorded a loss after tax of RM241.7 million (quarter ended March 31, 2010: RM310.6 million profit) after including amongst others, derivative gain of RM64.6 million (quarter ended March 31, 2010: RM56.7 million gain),” it said.
MAS said the group recorded an operating loss for the quarter of RM267.4 million compared to an operating profit of RM137.3 million in 4QFY10 due to higher operating expenses mainly from the increase in fuel cost.
The group recorded a loss after tax of RM241.7 million after including amongst others, derivative gain of RM64.6 million for the quarter as compared to profit after tax of RM226.4 million in previous quarter.
“The 2011 operating profit target for the group is RM300 million to RM600 million. The on time performance target for the company is 84.7% to 87.0%,” it said.
Source: http://www.theedgemalaysia.com/business/18...234m-in-1q.html
Added on May 26, 2011, 2:44 amPETALING JAYA: Malaysian Airline System Bhd (MAS) has reaffirmed its operating profit target of RM300 million to RM600 million this year, despite having posted nearly RM250 million net loss in the first quarter.
This reversed a net profit of RM310 million a year ago.
"For sure, high fuel costs have made it much difficult to hit those targets. I must say our targets are not forecasts. The philosophy of targets is that once we set them, we don't change them," MAS group managing director and chief executive officer Tengku Datuk Seri Azmil Zahruddin said.
Tengku Azmil attributed the RM242.34 million net loss in the three months ended March 2011 to rising fuel costs and a stronger ringgit.
Group revenue rose 10 per cent due to a sharp jump in premium-class business, but this was outstripped by a 32 per cent year-on-year surge in fuel costs to RM321 million.
In a media briefing here yesterday, Tengku Azmil said: "Jet fuel prices jumped 42 per cent to US$142 (RM434.52) per barrel from US$96 (RM293.76) per barrel a year ago."
The International Air Transport Association (IATA) has warned high oil prices would cut the industry profits by nearly half this year despite the growth in air travel with the economic recovery.
IATA downgraded its industry profit outlook this year to US$8.6 billion (RM26.32 billion) from US$9.1 billion (RM27.85 billion) estimated earlier in December 2010.
"Our overseas business had been hit by a stronger ringgit, which made services more expensive for clients in the US and Europe," Tengku Azmil said.
"We will adapt our strategies to ensure that the targets are met to our best ability, given the tough operating environment we're in."
MAS will remain focused on growth strategies, including updating aircraft and attracting more customers through better services and marke-ting.
It has so far ordered 35 Boeing 737-800, 15 Airbus A330-300 and six Airbus A380-800. Of these, three B737-800s were received in 2010.
Delivery of the A330-300 began last month.
Both the B737-800 and the A330-300 aircraft will serve the growing markets of South Asia, China, North Asia and Australia.
Read more: MAS targets up to RM600m profit despite Q1 loss http://www.btimes.com.my/Current_News/BTIM.../#ixzz1NOJVGOJa
This post has been edited by t5t: May 26 2011, 02:44 AM
MAS - Suspension, Why do you think it get suspended?
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