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flee

MAS reports Q2 net loss of RM349m

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Aug 14 (Reuters) - Malaysian Airline Systems Bhd (MAS) said in a filing to the local stock exchange on Tuesday:

 

*Q2 ended June 30 posted a net loss of 349.248 million Malaysian ringgit as compared with a net loss of 526.68 million ringgit the same quarter a year earlier

 

*The smaller loss was due to the airline's efforts in pricing and revenue management along with lower fuel and passenger-related costs

 

*Revenue fell 6 percent to 3.2 billion ringgit

 

*Moving forward, the airline said it expects the remainder of 2012 to be challenging

 

*Shares in the airline rose 3.88 percent on Tuesday to 1.07 ringgit a share prior to the earnings announcement

 

Source: http://www.reuters.c...4E8JE1F20120814

 

Bursa Malaysia Filing: http://announcements... 2012 Final.pdf

Edited by flee

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Cash Flow Hedging losses amounted to RM77mil.

 

Did they sold any aircraft off? There's a net gain of approx RM9mil from disposal.

 

Catering expenses paid to LSG SkyChefs Brahim increased to approx RM68mil for the Qtr as compared to RM55mil for Q2 2011.

 

RM 1.8mil paid for QPR Sponsorship.

 

RM9.6mil paid for AirAsia X Re-accommodation Agreement

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Did they sold any aircraft off? There's a net gain of approx RM9mil from disposal.

 

End of lease for a couple of 734s. Next quarter you'd probably see more since the 744s and some of the 772s are going as well.

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End of lease for a couple of 734s. Next quarter you'd probably see more since the 744s and some of the 772s are going as well.

 

 

Seems like MH paying D7? Unless I read it wrongly.

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End of lease for a couple of 734s. Next quarter you'd probably see more since the 744s and some of the 772s are going as well.

 

Thought they made some huge provision (loses) on the last quarter 2011 results due to end of lease aircrafts? Now they are showing

gains!! Some creative accounting here if you ask me!

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Bottom line is, the airline is still making a loss no matter how the numbers has improved.

I wondered whether operations wise has any improvement at all. Time for the old horses to retire and a brand new set of management team to take over.

I believed that when there's no pressure to perform, the results of any enterprise will be just mediocre if not weak.

 

Let's see how long can MAS swim in the red.

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Bottom line is, the airline is still making a loss no matter how the numbers has improved.

I wondered whether operations wise has any improvement at all. Time for the old horses to retire and a brand new set of management team to take over.

I believed that when there's no pressure to perform, the results of any enterprise will be just mediocre if not weak.

 

Let's see how long can MAS swim in the red.

 

Rome wasn't built in a day - and considering the state of the industry at the moment I don't think it's a fair assessment of the situation at hand.

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Bottom line is, the airline is still making a loss no matter how the numbers has improved.

I wondered whether operations wise has any improvement at all. Time for the old horses to retire and a brand new set of management team to take over.

I believed that when there's no pressure to perform, the results of any enterprise will be just mediocre if not weak.

 

Let's see how long can MAS swim in the red.

It will be pretty long as they will always have EPF to bail them out........

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It will be pretty long as they will always have EPF to bail them out........

 

They will always have kind and generous Malaysian taxpayers to bail them out.

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The losses are reduced, so at least they are going in the right direction. But how is their result compare to their own target? Did they perform better or worse than expected?

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Even though MH made a loss in Q2, it was an improvement over last year's Q2 result. Just look at CX and SQ's Q2 result. They did so much worse compared to a year ago.

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Even though MH made a loss in Q2, it was an improvement over last year's Q2 result. Just look at CX and SQ's Q2 result. They did so much worse compared to a year ago.

Cold comfort - near to absolute zero ! :p

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Even though MH made a loss in Q2, it was an improvement over last year's Q2 result. Just look at CX and SQ's Q2 result. They did so much worse compared to a year ago.

Why are you quoting SQ ? They actually made S$78 Million in net profit between April 2012 - June 2012, and that is an increase of S$33 Million over the same period last year which they made a net profit of only S$45 Million.

 

CX on the other hand, posted a terrible results but we can't really compare CX or even SQ to MH as CX and SQ are just going through some rough patch. The most importantly thing is that they deliver a very consistent financial result. There are times that they made some losses but hey, they are making loads of money in almost every quarters unlike some which is in the red almost every quarters :p

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http://biz.thestar.c...96&sec=business

 

From the article:

 

Last year, MAS took a bold step to cut capacity by 12% to stop flying low yielding routes such as Surabaya, Karachi, Dubai, Dammam, Johannesburg and Cape Town, Buenos Aires and Rome.

I hope that MH will do better after cutting these routes. Most of MH former destinations were for prestige reason. Cutting Johannesburg, Cape Town and Buenos Aires would mean that MH no longer a member of six-continent club. MH can achieve better connectivity through its oneworld partners.

 

The next is filling planes to bring in income to turn into the black. MAS added that it intended to increase revenue generation via aggressive marketing, promotions and branding initiatives and increase in fleet utilisation by adding frequencies to popular regional destinations.

These two are co-related. MH A&P has been very weak compared to biggies like EY, QR, EK, CX and SQ. Even TG has a big billboard in Ipoh to promote itself. Where is MH? This is evident at the MH 380 thread. MH really need a competent corporate communication department to handle this. Start booking magazine pages, billboards, tv advertisement slots now!!

 

Hopefully they have a new Revenue Management System in place now.....

 

At the same time, it wants to reduce turnaround time for its aircraft in a bid to cut cost. The fleet renewal exercise to have a younger and more fuel efficient fleet remains a significant initiative.

The current turnaround time is 30 mins at least......How much can they cut?? Anyone has any idea?

 

Fleet renewal exercise is currently on-going......A good achievement by MH nonetheless.

Edited by JuliusWong

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It will be pretty long as they will always have EPF to bail them out........

 

They will always have kind and generous Malaysian taxpayers to bail them out.

 

Maybe Tan Sri wasn't too keen on his KWSP savings and income tax deductions going towards the MH benevolence fund - that prompted his migration to Jakarta perhaps ?! :p

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Looking at how well Emirates is doing out of KUL makes me wonder if MAS has made a horrific mistake of withdrawing from Dubai.

 

Although the airline continues to show a loss, one should really take comfort that the loss is shrinking. Set against the current economic backdrop, I personally think it is a very credible performance. As more A380s and B737-800s replace older aircraft that are less fuel-efficient and has lower passenger appeal, hopefully the loadings and yield will improve in the coming quarters. 2013 is probably a most crucial year for MAS (and her competitors). SIA has already fired the first salvo by announcing the launch of upgraded product in first, business and even economy class in the second half of 2013 - and her competitors will really have to ensure they are not left too far behind.

 

KC Sim

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Rome wasn't built in a day - and considering the state of the industry at the moment I don't think it's a fair assessment of the situation at hand.

 

I think that the worse the industry is now, the more the need for a business entity to consolidate and recover. Macro causes should not be fully taken as a default cause of a business entity's continued poor performance. But then, MAS is a national carrier that besides aimed to make profit, it do also aim to serve the nation's interest and leaders.

 

I agreed that its not a fair assessment of MAS's performance in the business' s context.

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Why are you quoting SQ ? They actually made S$78 Million in net profit between April 2012 - June 2012, and that is an increase of S$33 Million over the same period last year which they made a net profit of only S$45 Million.

 

CX on the other hand, posted a terrible results but we can't really compare CX or even SQ to MH as CX and SQ are just going through some rough patch. The most importantly thing is that they deliver a very consistent financial result. There are times that they made some losses but hey, they are making loads of money in almost every quarters unlike some which is in the red almost every quarters :p

 

Oops. I thought the SQ Q2 result was worse compared to last year.

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Why are you quoting SQ ? ..... they made a net profit of only S$45 Million.

Why are you quoting "only" S$45M (circa RM113M) net profit ?! :D

Those sort of figures will be cause for delirious celebrations for certain airline managers here :p

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I love the good-natured humour here! This is what makes Mwings forum so engaging! Keep it up folks!

 

KC Sim

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Rome wasn't built in a day - and considering the state of the industry at the moment I don't think it's a fair assessment of the situation at hand.

 

 

Without taking effective action to reduce overhead, MH profitability is unsustainable. What action has AJ taken to reduce overhead or need to wait until after GE13?

 

I think that the worse the industry is now, the more the need for a business entity to consolidate and recover. Macro causes should not be fully taken as a default cause of a business entity's continued poor performance. But then, MAS is a national carrier that besides aimed to make profit, it do also aim to serve the nation's interest and leaders.

 

I agreed that its not a fair assessment of MAS's performance in the business' s context.

 

 

MH national service is carried out by Maswings, which any losses is indemnified by the gomen. As long as MH is a PLC, shall ultimately responsible to shareholders.

 

 

Believe MH performance can be judged from DXB and DOH route, neither D7 or AK is plying DXB or DOH, and EK and QR are having multiple daily services from KUL.

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