MAS posts RM 527 Million Loss in Q2, Doesn’t Expect Profit for 2011

[flee 5]

KUALA LUMPUR, Aug 23 — Malaysia Airlines (MAS) has cancelled its press conference scheduled for 3.30pm today amid expectations that it will report hefty losses for the second quarter of this year.

 

When contacted, a MAS spokesman said that the press conference was cancelled due to “unforeseen circumstances”.

 

Analysts contacted by The Malaysian Insider said however that the analyst briefing scheduled for this evening had not been canceled.

 

The analysts also estimated the national carrier’s second quarter losses at between RM450 million to RM550 million.

 

The Malaysian Insider reported today that MAS was considering delaying its membership with global airline group Oneworld and deliveries of the super airliner Airbus A380 as its new management focuses on cutting losses, which spiked in the second quarter of 2011.

 

Sources said that MAS will announce a bigger loss today for this year’s second quarter, traditionally its weakest business period, from the net loss of RM242.3 million in the first quarter ended March 31.

 

It posted a net loss of RM534.7 million for the second quarter of 2010.

 

The national airline has been flying through turbulent skies the last in the past decade after the government bought back the airline from former corporate high-flyer Tan Sri Tajudin Ramli at RM8 per share or about double the market price at the time.

 

The airline was then saddled with a debt reported to be RM9.5 billion.

 

Following the takeover by the government, the airline had its books cleaned up in 2002 under the wide asset unbundling (WAU) exercise that was engineered by the BinaFikir consultancy.

 

The state-owned airline had two rights issues since the WAU, raking in RM1.6 billion in 2007 and RM2.67 billion in 2010 to fund its operations and fleet purchases.

 

It was also lacklustre financially, shocking the market with a huge loss in the last quarter even while rivals such as Singapore Airlines reported profits, although reduced.

 

The national carrier also suffered the indignity of having its market capitalisation surpassed by younger upstart AirAsia after its share price fell to record lows.

 

State asset manager Khazanah Nasional Berhad, swapped 20.5 per cent of MAS stock for a 10 per cent stake in Asia’s biggest budget carrier AirAsia on August 9. The swap enabled AirAsia bosses Tan Sri Tony Fernandes and his partner Datuk Seri Kamaruddin Meranun to sit on the MAS board and help turn around the loss-making flag carrier.

 

Source: http://www.themalaysianinsider.com/business/article/mas-cancels-press-conference-amid-talk-of-huge-losses/

 

MAS posts RM527m loss in Q2, doesn’t expect profit for 2011

 

KUALA LUMPUR, Aug 23 — Malaysia Airlines (MAS) today announced a net loss of RM527 million for the second quarter of 2011 due to higher fuel costs despite recording a better yield and a 9 per cent growth in passenger revenue from the same period last year.

 

The flag carrier said its group total revenues increased to RM3.485 billion for the second quarter of 2011, or eight per cent more than the RM3.213 billion for the same quarter last year, while passenger revenue was RM2.086 billion for the same period this year compared to RM1.912 billion for the corresponding period in 2010.

 

“The airline’s aggressive and consistent cost-control measures also yielded positive results, with a two per cent reduction in non-fuel-related expenses for 2Q 2011 compared to the same quarter for 2010,” the airline said in a statement.

 

“The Board of Malaysia Airlines does not anticipate to make a profit for the 2nd half of 2011, although the anticipated losses will not be as severe as the first half of 2011,” it added.

 

MAS suffered a net loss of RM242.3 million in the first quarter ended March 31, making it a total loss of RM769.3 million for the first half of the current financial year.

 

The MAS board had earlier cancelled a press conference to announce the results for what is its traditionally weakest business period. It posted a net loss of RM534.7 million for the second quarter of 2010.

 

The statement said fuel costs “continued to have the greatest impact to the group’s operations, increasing by 41 per cent from RM1.102 billion for 2Q 2010, to RM1.550 billion for 2Q 2011.”

 

MORE TO COME

 

Source: http://www.themalaysianinsider.com/business/article/mas-posts-rm527m-loss-in-q2-doesnt-expect-profit-for-2011/

[Josh T 0]

Yikes! That's a bad result...

[alberttky 0]

They should just fold up.

[Lock SH 0]

RM527 mil / 120 days = RM4.39 million/day .......... that is a huge money to lose ........... WELL DONE !!!!

 

 

[Kenneth Chong WT 0]

ok...now i'm worried!

[flee 5]

RM527 mil / 120 days = RM4.39 million/day .......... that is a huge money to lose ........... WELL DONE !!!!

 

 

I think there should be 91½ days in a quarter. So the corresponding loss would work out to RM 5.76m per day.

[Lock SH 0]

Thanks Flee, my bad .......

 

 

[Waiping 12]

I remember TF bought over Air Asia with RM1. Wonder how much would TF evaluate MH?

[BC Tam 2]

I remember TF bought over Air Asia with RM1. Wonder how much would TF evaluate MH?

Toxic waste ?

But wait, he owns a fifth of it now, so it must be worth something .....

 

 

I think it's become apparent why no CEO was put in place since the last one left - who would want to be the target of the ensuing ridicule

Edited August 23, 2011 by BC Tam

[flee 5]

.pdf"]KLSE Announcement Edited August 23, 2011 by flee

[JuliusWong 0]

wa lao wea~~ can it get any worse than this~~~

[Raymund Yeoh 1]

I wonder will they end up like the former Swiss where if I remember correctly the airline folded and need to be reestablished again...

[J Chong 0]

first the 1000 free enrich gold cards flooding the lounges. now no oneworld aliiance to increase routing and earning options?

 

Might as well fly SQ or CX.

[Ahmad M 1]

They should just fold up.

 

Easy for you to say seating behind a keyboard. What do you do with the 19000+ employees then?

[Lock SH 0]

Give them RM527 mil and share equally among them as a VSS package ........ that was what MAS spent in 91 days anyway.

 

Naaahhhh ....... I am more worried about 'Brahim Badawi' ....... what will happen to him without MAS catering contract if MAS fold up?? ......

 

 

Edited August 23, 2011 by Lock SH

[alberttky 0]

Easy for you to say seating behind a keyboard. What do you do with the 19000+ employees then?

 

Yes it is easy for me to say. But MH has gone cancerous and needs a chemo to fix the damn thing.

[JuliusWong 0]

Yes it is easy for me to say. But MH has gone cancerous and needs a chemo to fix the damn thing.

I dun think a chemo can cure the problem, the cancer will just come back AGAIN and AGAIN! Fold it and set up a new airline. When Swissair went bankrupt, it sent shockwave through their country, a clean sheet financial heaven....for Malaysia, we won't be surprised if it folds.

 

Not forgetting MH liquidated all their assets in 2005 offload to PMB....so what will you do this time MH? Sell yourself?? To who??

 

MALAYSIA AIRLINES POSTS Q2 LOSS

August 23, 2011

 

Malaysia Airlines posted its second straight quarterly loss and warned that high fuel costs would keep it in the red for the rest of the year.

 

The national carrier recorded a second-quarter net loss of MYR527 million ringgit, compared with a loss of MYR532 million (USD$179 million) a year ago. Fuel costs jumped 41 percent to MYR1.55 billion ringgit.

 

Revenue rose 8 percent to MYR3.5 billion ringgit during the first half.

 

Malaysian said it did not expect to be profitable in the second half of 2011, although the anticipated losses would be smaller than those in the first half.

 

"MAS current forward booking profile indicates key challenges for the Europe, US and Japan regions, with normal forward booking trend for other major regional destinations," the airline said in a statement.

 

Earlier this month, the airline and rival AirAsia agreed to swap shares in a deal valued at USD$364 million, an exercise analysts said would eliminate overlaps and boost both companies' profits.

 

High fuel prices and the uncertain global economic outlook have weighed on airlines worldwide, prompting carriers such as Australia's Qantas to consider collaborations to save costs and weather the challenges.

 

Malaysian said it would take steps to return to profitability and was executing the return of two 747-200 freighters, one 747-400 and three 737-400s by end September 2011 due to the difficult environment.

 

"Immediate initiatives will include, amongst others, better capacity management; the implementation of dynamic pricing to improve yields and revenues; a review of products and brand positioning," the airline said.

 

Malaysia Air's fleet renewal has begun with the delivery of five new Boeing 737-800 aircraft and five new A330-300s as at mid-August 2011, it said.

 

There will be six more aircraft deliveries in 2011, with two 737-800s, two A330 Freighters and two ATR72.

 

Source: http://news.airwise.com/story/view/1314111709.html

Edited August 23, 2011 by JuliusWong

[Craig 0]

Anyone read the cash flow? The MYR $1.5 billion cash reserve is gnarly!

[JuliusWong 0]

Anyone read the cash flow? The MYR $1.5 billion cash reserve is gnarly!

Yes, it is....it will be burn through in next two months. All the best MH!

[Pieter C. 5]

I wonder will they end up like the former Swiss where if I remember correctly the airline folded and need to be reestablished again...

 

Yes, Swissair was folded and resurrected by Crossair, a regional airline, and renamed Swiss

SABENA was folded and resurrected by Delta Air Transport, a regional airline, and renamed Brussels Airlines...

 

MAS will be folded and resurrected by Firefly ? and renamed as

[BC Tam 2]

MAS will be folded and resurrected by Firefly ? and renamed as

If current trends anything to go by, MAS will likely be folded and resurrected by uncle Tony and renamed Sapphire

Just a guess

[Raymund Yeoh 1]

If current trends anything to go by, MAS will likely be folded and resurrected by uncle Tony and renamed Sapphire

Just a guess

 

 

If this happens...it will be joke of the year.....I dont think ppl (incld me) will like the name Sapphire Airlines as the new national airlines of Malaysia.....

 

first the 1000 free enrich gold cards flooding the lounges. now no oneworld aliiance to increase routing and earning options?

 

Might as well fly SQ or CX.

 

I rather put my miles into CX than SQ....

 

Easy for you to say seating behind a keyboard. What do you do with the 19000+ employees then?

 

Let MH goes bust and reform/reestablish a new airline with the current employees of MH....I see that is the only way to save and revamp MH.....as no matter how much cost cutting exercise or cancellation of planes they do , MH will still be in the dumps unless somethign drastic happens....looks at Swiss today....

[BC Tam 2]

What do you do with the 19000+ employees then?

 

 

Sh*t has truly hit the fan. Run!

 

Regrettably

[KK Lee 5]

Let MH goes bust and reform/reestablish a new airline with the current employees of MH....I see that is the only way to save and revamp MH.....as no matter how much cost cutting exercise or cancellation of planes they do , MH will still be in the dumps unless somethign drastic happens....looks at Swiss today....

 

Agreed with you

[alberttky 0]

Yes, Swissair was folded and resurrected by Crossair, a regional airline, and renamed Swiss

SABENA was folded and resurrected by Delta Air Transport, a regional airline, and renamed Brussels Airlines...

 

MAS will be folded and resurrected by Firefly ? and renamed as

 

Air Koyak.