flee 5 Report post Posted August 14, 2012 (edited) 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 August 14, 2012 by flee Share this post Link to post Share on other sites
Sing Yew 1 Report post Posted August 14, 2012 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 Share this post Link to post Share on other sites
BC Tam 2 Report post Posted August 14, 2012 RM9.6mil paid for AirAsia X Re-accommodation Agreement Huh Who paid who ? Share this post Link to post Share on other sites
Cheng Long 0 Report post Posted August 14, 2012 Hmm.. something dodgy. Share this post Link to post Share on other sites
Mohd Suhaimi Fariz 2 Report post Posted August 14, 2012 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. Share this post Link to post Share on other sites
Sharil Abdul Rahman 0 Report post Posted August 14, 2012 Huh Who paid who ? the ticket price i presume - seeing most of the tickets from the RA was really discounted? Share this post Link to post Share on other sites
Sing Yew 1 Report post Posted August 14, 2012 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. Share this post Link to post Share on other sites
S V Choong 4 Report post Posted August 14, 2012 Whats with the QPR sponsorship, are they in a position to afford sponsorship? Share this post Link to post Share on other sites
jit 0 Report post Posted August 14, 2012 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! Share this post Link to post Share on other sites
Cire 0 Report post Posted August 15, 2012 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. Share this post Link to post Share on other sites
Mohd Suhaimi Fariz 2 Report post Posted August 15, 2012 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. Share this post Link to post Share on other sites
JuliusWong 0 Report post Posted August 15, 2012 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........ Share this post Link to post Share on other sites
alberttky 0 Report post Posted August 15, 2012 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. Share this post Link to post Share on other sites
Cheng Long 0 Report post Posted August 15, 2012 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? Share this post Link to post Share on other sites
Josh T 0 Report post Posted August 15, 2012 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. Share this post Link to post Share on other sites
BC Tam 2 Report post Posted August 15, 2012 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 ! Share this post Link to post Share on other sites
Isaac 0 Report post Posted August 15, 2012 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 Share this post Link to post Share on other sites
JuliusWong 0 Report post Posted August 15, 2012 (edited) 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 August 15, 2012 by JuliusWong Share this post Link to post Share on other sites
BC Tam 2 Report post Posted August 15, 2012 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 ?! Share this post Link to post Share on other sites
KC Sim 2 Report post Posted August 15, 2012 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 Share this post Link to post Share on other sites
Cire 0 Report post Posted August 15, 2012 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. Share this post Link to post Share on other sites
Josh T 0 Report post Posted August 15, 2012 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 Oops. I thought the SQ Q2 result was worse compared to last year. Share this post Link to post Share on other sites
BC Tam 2 Report post Posted August 15, 2012 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 ?! Those sort of figures will be cause for delirious celebrations for certain airline managers here Share this post Link to post Share on other sites
KC Sim 2 Report post Posted August 15, 2012 I love the good-natured humour here! This is what makes Mwings forum so engaging! Keep it up folks! KC Sim Share this post Link to post Share on other sites
KK Lee 5 Report post Posted August 16, 2012 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. Share this post Link to post Share on other sites