Gavin Andrew David 6 Report post Posted November 23, 2011 PETALING JAYA: Malaysia Airlines (MAS) posted a worse-than-expected net loss of RM477.59mil for the third quarter ended Sept 30, on higher fuel cost, derivative loss and unrealised foreign exchange loss. This compared with a net profit of RM233.23mil for the corresponding period last year, and market's expectations of a less than RM300mil net loss for the third quarter. Operating loss for the national carrier stood at RM156mil for the third quarter compared with an operating profit of RM35mil a year earlier. During the period under review, MAS saw its revenue grew to RM3.57bil compared with RM3.4bil in the year-earlier period. The company attributed its revenue growth to a 3% growth in passenger load on the back of a 6% capacity growth, reduced seat factor by a 2.7 percentage point to 76%; and a 6% improvement in passenger yield. Loss per share stood at 14.29 sen for the third quarter compared with an earnings per share of 6.98 sen for the corresponding period last year. MAS said its total expenditure for the quarter in review rose 10% or RM357mil to RM3.72bil, mainly to the increase in fuel cost by RM396mil, while non-fuel cost was lower by 2% or RM39mil over the same quarter last year. MAS' net loss was inclusive of a derivative loss of RM70mil and unrealised foreign exchange loss of RM195mil, compared with a derivative gain of RM156mil and unrealised foreign exchange gain of RM88mil. For the nine-month period, MAS net loss stood at RM1.25bil, with a loss per share of 37.30 sen, compared with a net profit of RM8.55mil and an earnings per share of 0.27 sen for the nine months to September 2010. Revenue grew to RM10.24bil for the first nine months of 2011, compared with RM9.91bil for the corresponding period last year. In a statement, MAS said the operating environment remained challenging for the remaining three months of 2011. It expected the fourth quarter operational results to be weaker than the current quarter. “Not only is jet fuel price staying high, the worsening economic situation in Europe is being translated into weak forward booking profiles for our long-haul routes,” it said. MAS said its management was undertaking immediate counter-measures to address the situation via heightened revenue management activities and other commercial initiatives. The company said it was embarking on a significant network rationalisation exercise to withdraw structurally weak, loss-making routes and to possibly embark on new higher yielding routes focusing on Asia. “With the adoption of a leaner network, the management shall also be accelerating the return of ageing aircraft and in so doing, improve the fuel efficiency of our fleet,” MAS said. “We expect the full impact of these initiatives to begin bearing fruit in 2012,” it added. MAS shares closed at RM1.36, down four sen yesterday. http://biz.thestar.com.my/news/story.asp?file=/2011/11/22/business/9951484&sec=business Share this post Link to post Share on other sites
lionel 0 Report post Posted November 23, 2011 Hai~ should i said this MAS's news is not something that will surprise us? Share this post Link to post Share on other sites
Izanee 0 Report post Posted November 23, 2011 I wonder what good ol' uncle Tony was saying in his tweet? Do they think we are all stupid or something? Don't they think we are able to read? Share this post Link to post Share on other sites
