Naim 6 Report post Posted November 28, 2006 Good news from MAS. November 28, 2006 19:06 PM MAS Returns To The Black In Q3 With Profit Of RM256.67 Mln PETALING JAYA, Nov 28 (Bernama) -- Seven months after unveiling its business turnaround plan, Malaysia Airlines returned to the black chalking up a pre-tax profit of RM256.67 million in the third quarter ended Sept 30, 2006, compared with a pre-tax loss of RM361.030 million. This led to the national carrier MAS reducing its pre-tax loss to RM216.18 million for the first nine months versus a pre-tax loss of RM509.087 million in the same period last year. Operating revenue for the quarter under review stood at RM3.501 billion, improved from RM3.014 billion reported in the first quarter 2005, MAS Chief Executive Officer and Managing Director Idris Jala announced here Tuesday. For the Jan-Sept period, operating revenue increased to RM9.418 billion from RM8.782 billion. For the quarter, he said the airline recorded a substantial improvement in net profit of RM240 million compared with a net loss of RM365.622 million. Operationally, MAS made a third quarter profit of RM73 million via passenger and cargo business, the first operational profit in a quarter since the launch of BTP, he said. Operational profit was mainly driven by passenger revenue which rose 14 percent to RM2.542 billion from RM2.224 billion in the same quarter 2005. ... read more here: http://www.bernama.com.my/bernama/v3/news_lite.php?id=232999 Follow-up story. November 28, 2006 21:17 PM MAS May Revise Financial Forecast PETALING JAYA, Nov 28 (Bernama) -- Malaysian Airline System Bhd (MAS) may revise its financial forecast for 2007 after turning in better-than-expected results for three quarters, with the third reporting a profit. "We might upgrade the target next year," managing director/chief executive officer, Idris Jala, said after announcing MAS third-quarter results here Tuesday. "MAS will rather revise the target for the new year than changing the goal post for the immediate quarter. "Once we finish with that, in due course we will think of what to announce under the GLC (government-linked companies) programme. Together with other GLCs we will be publishing our key performance index. Not just the net income and net number but other aspects also," Idris said. However, he said, MAS would retain the fourth-quarter target for financial year ended Dec 31, 2006 at RM5.0 million loss. "The airline expects to post a net loss of RM620 million for 2006 and forecasts a net profit of RM50 million next year," he said. On the request from the government to reduce the fares for international routes airfares to assist the Visit Malaysia Year 2007 programme, he said they would stay at the current rate because they are competitive. MAS, he said, has spoke to tourism and transport ministries on the matter. "We had submitted a comparison of our fares with other airlines to the ministries. The fare comparison, without any doubt, establishes one conclusion that our fares are competitive, not just within Malaysia," he said. -- BERNAMA Share this post Link to post Share on other sites
Andrew Ong 1 Report post Posted November 28, 2006 (edited) The turnaround plan from MAS is working Edited November 28, 2006 by Andrew Ong Share this post Link to post Share on other sites
Tamizi Hj Tamby 1 Report post Posted November 28, 2006 Yay Good news for MH Share this post Link to post Share on other sites
Nizam 0 Report post Posted November 28, 2006 Congratulations to MAS, hope the management can continue to bring the profit for the company ........ Still dreaming that I will get RM 192 fare ticket again from Kuching to KL again ...... Bravo bravo Share this post Link to post Share on other sites
KK Lee 5 Report post Posted November 28, 2006 This profit is from fuel surcharge. Share this post Link to post Share on other sites
T Azahan 1 Report post Posted November 28, 2006 This profit is from fuel surcharge. doesn't matter i guess. what everyone wants to hear is the magic word 'profit'. Share this post Link to post Share on other sites
Min Chun 0 Report post Posted November 28, 2006 doesn't matter i guess. what everyone wants to hear is the magic word 'profit'. but at the same time..'consumers' are complaining that the prices of air tickets from MH are too HIGH.. Share this post Link to post Share on other sites
Naim 6 Report post Posted November 28, 2006 This profit is from fuel surcharge. And also from lower overheads due to VSS, and also due to this: MAS also recorded a net one of gain amounting to RM194 million from the sale of properties and widespread asset unbundling compensation from the domestic network rationalisation. So we should see how it performs in the next 2-3 quarters for a better picture. Idris is hopeful for Q4 since traditionally this is the best Q for MAS business. Share this post Link to post Share on other sites
Pieter C. 5 Report post Posted November 28, 2006 Well done MAS: around 55 million Euros profit for the 3rd Quarter Share this post Link to post Share on other sites
Adrian M 0 Report post Posted November 28, 2006 That's a great news for MAS. Bravo. Now all black and blue ink. (As sinister I might sound) I just hope there will be no more someone in the management who get money and power all over their heads and decide to buy yet another 3 ickky paintings makes DIY paintings look better than the original ones. Or anyone in the management that is so "over-capable" that screw up yet again. <_> Else, it's better to think about letting JJ Ong of MASkargo to have a hand in MAS. Share this post Link to post Share on other sites
Pieter C. 5 Report post Posted November 28, 2006 Malaysia Airlines Swings To Q3 Profit November 28, 2006 Malaysia Airlines reported a quarterly profit on Tuesday, breaking a sequence of five quarters of losses, despite high jet fuel costs and increased competition. The state-controlled airline posted a net profit of MYR240.7 million ringgit (USD$66.1 million) in the third quarter, compared with a loss of MYR365.6 million (USD$100.4 million) a year earlier. Like most of its Asian rivals, high oil prices had taken a toll on the carrier, which is also facing stiff competition at home from budget airline AirAsia. Singapore Airlines last month reported a 15 percent drop in quarterly profit due to high jet fuel costs and warned fuel costs would remain a problem for the foreseeable future. Asian jet fuel prices have risen by almost a third this year, hitting a record USD$93.20 a barrel in August. They have since dropped with the price of oil, but are still higher than at the start of the year. Malaysia Airlines, which has said it expects net losses of MYR620 million (USD$170 million) this calendar year, has shed staff and loss-making routes under a plan to return to profit next year. (Reuters) Share this post Link to post Share on other sites
Jessnor Arif 1 Report post Posted November 28, 2006 And hopefully the Government will let MAS run its bussinees like it should... No more interfering please... Share this post Link to post Share on other sites
Tony 1 Report post Posted November 28, 2006 Things are not going to get easier - what's easy has been done, e.g. selling assets, downsizing and what not to generate cash and to drive the cost down. But anyhow, things will be better if MH keeps itself moving in this fashion (and pace). It's time to see how someone from another industry can have a go in airline business and making it successful! Share this post Link to post Share on other sites
Daniel Ng 0 Report post Posted November 29, 2006 doesn't matter i guess. what everyone wants to hear is the magic word 'profit'. Agreed! Who are we to tell profits are from fuel surcharge or not... Share this post Link to post Share on other sites
KK Lee 5 Report post Posted November 29, 2006 Agreed! Who are we to tell profits are from fuel surcharge or not... Any bean counter will tell you. On the other hand, you can just wait and see how much of MAS shares is taken up by foreign funds. Share this post Link to post Share on other sites
Tamizi Hj Tamby 1 Report post Posted November 29, 2006 Hope that the management will axe down the domestic fare,that's for sure.The current MH domestic fares is killing me in financially.Seriously!! Share this post Link to post Share on other sites
adrianqcs 0 Report post Posted November 29, 2006 Hope that the management will axe down the domestic fare,that's for sure.The current MH domestic fares is killing me in financially.Seriously!! Do you know that includes the sale of the MAS building in KL City Center which is worth 190+ Million ringgit + compensation from the government! So Don't be that happy...this is not really profit making yet.. let see the next quarter without all this asset selling and goverment assist to show their short term happy faces! From the The Star: The turnaround in the third quarter just ended was partly attributed to a one-off gain of RM194mil from the sale of MAS’ headquarters in Kuala Lumpur and compensation received from the government. Share this post Link to post Share on other sites
Naim 6 Report post Posted November 29, 2006 Do you know that includes the sale of the MAS building in KL City Center which is worth 190+ Million ringgit + compensation from the government! So Don't be that happy...this is not really profit making yet.. let see the next quarter without all this asset selling and goverment assist to show their short term happy faces! From the The Star: The turnaround in the third quarter just ended was partly attributed to a one-off gain of RM194mil from the sale of MAS’ headquarters in Kuala Lumpur and compensation received from the government. Yes, profits from operations would be preferable. When no more assets to sell, how? Of course, taking advantage of this 'good news', market players will push the share price up next few days, but when they sell out, there'll be many suckers left crying. It's just not sustainable. Share this post Link to post Share on other sites
Andrew Ong 1 Report post Posted November 30, 2006 Well done MAS: around 55 million Euros profit for the 3rd Quarter 55 Million Euros; MYR$194/4=err..er...uh.. USD$48.5 million gain!!!! Once again, congrats MAS Share this post Link to post Share on other sites
Pieter C. 5 Report post Posted November 30, 2006 55 Million Euros; MYR$194/4=err..er...uh.. USD$48.5 million gain!!!! It said previously USD 66.1 million, so explain you computation... (240.7:3.55) Share this post Link to post Share on other sites
Naim 6 Report post Posted November 30, 2006 "They are of the opinion that the airline made a quick recovery because it raised ticket prices, retrenched workers and sold assets including the MAS headquarters building." Hey, that's my humble opinion too. Sustainable profits next 3 quarters, then I tabek spring Idris and geng. November 30, 2006 16:21 PM Lawmakers Doubt Malaysia Airlines' Achievement KUALA LUMPUR, Nov 30 (Bernama) -- Several lawmakers Thursday expressed doubt over Malaysia Airlines (MAS)'s early success in its turnaround plan and urged the government to be more transparent about the airline's profit. They want to know whether the profit posted by the national carrier was attributed to the sharp increase in ticket prices or other surcharges. They are of the opinion that the airline made a quick recovery because it raised ticket prices, retrenched workers and sold assets including the MAS headquarters building. "Everyone can make a profit in business if they raise ticket prices ... so we want the government to be more transparent about MAS' profit," said Datuk Raja Ahmad Zainudin Raja Omar (BN-Larut) in the Dewan Rakyat here. Finance Ministry parliamentary secretary Datuk Seri Dr Hilmi Yahaya, however, told the House that the profit gained by MAS was "the fruit of the airline's turnaround plan" implemented about a year ago. "MAS has been restored and is now able to cut costs ... I am confident that if this performance is sustained, the profit will increase. On suggestion by Datuk Mohd Said Yusof (BN-Jasin) for MAS to revise downward its fares following the significant fall in the world's crude oil prices, Dr Hilmi said "the government will ask MAS to do whatever is appropriate". After five consecutive quarters of losses, MAS recorded a net profit of RM240.7 million in the third quarter ending Sept 30. It posted a net loss of RM366.4 million in the same quarter last year. Group revenue during the quarter under review rose to RM3.63 billion against RM3.07 billion a year earlier. The profit is partly attributed to a one-off gain of RM194 million from the sale of MAS' headquarters here and compensation received from the government. The company also saved cost after it cut unprofitable routes and reduced workforce. The airline said passenger and cargo yields also improved tremendously since the implementation of its turnaround plan. Its net loss in the first nine months of this year was RM257.9 million from RM532.6 million in the same period last year. MAS is targeting to cut losses to RM620 million this year and to post a profit of RM50 million next year. It also expects to turn in a net profit of RM500 million in 2008. -- BERNAMA Share this post Link to post Share on other sites
Isaac 0 Report post Posted November 30, 2006 KUALA LUMPUR, Nov 30 (Bernama) -- Several lawmakers Thursday expressed doubt over Malaysia Airlines (MAS)'s early success in its turnaround plan and urged the government to be more transparent about the airline's profit. I second that ! Share this post Link to post Share on other sites
Andrew Ong 1 Report post Posted November 30, 2006 It said previously USD 66.1 million, so explain you computation... (240.7:3.55) Oops, my bad Share this post Link to post Share on other sites
T Azahan 1 Report post Posted November 30, 2006 when MH incur losses, everyone complains. but when MH suddenly makes money again, people still complain and doubtful. give MH a break laaaa....... . Share this post Link to post Share on other sites
Jessnor Arif 1 Report post Posted December 2, 2006 Damn, if you do... damn, if you dont.... Share this post Link to post Share on other sites
