Tourism Breaking News
Malaysia Aviation Group (‘MAG’ or ‘the Group’) reports a positive Net Profit After Interest and Tax (NIAT) of RM54 million for the year 2024, marking a third consecutive year of positive operating profit at RM113million. This performance is further underscored by a robust Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of RM788 million, achieved despite operational headwinds, including proactive network cuts in Q4 2024, which reduced capacity by 18 per cent.
The Group maintained a strong cash balance of RM3.0 billion as of 31 December 2024, without any capital injections from its main shareholder, Khazanah Nasional Berhad, since October 2021.
The capacity cuts, driven by supply chain disruptions which extended maintenance times and delays in new aircraft delivery, were implemented during a traditionally strong quarter, impacting the Group’s full-year revenue, which stood at RM13,679mil – a marginal 1 per cent decrease year-on-year on the back of a 6 per cent increase in Available Seat Kilometre (ASK). However, passenger traffic remained robust in the premium segment with stronger load factors for both passenger and cargo segments. The Group also expanded its international network through new routes and deep partnership collaborations.
The Group’s positive NIAT was further supported by a reversal of impairment on Rights of Use Assets, Aircraft, Property, Plant and Equipment and Intangible Assets amounting to RM426 million. These impairments, initially recognised during the COVID-19 pandemic in 2020, were reversed due to improved capacity, revenue, seat factor, and yield experienced in the financial years 2023 and 2024.
Operational Highlights: Airlines and Non-Airlines Business Segments
Airline Business Segment
- Malaysia Airlines Berhad (MAB) posted an operating profit of RM139 million, an 87 per cent decline from RM1.09 billion in 2023 due to lower yield and detrimental impact of capacity cut in Q4 2024.
- MAB’s yearly capacity increased by 7 per cent, with a 17 per cent rise in passengers carried and a load factor of 81 per cent compared to 77 per cent in 2023.
- MAB introduced three new destinations: Male (Maldives), Da Nang (Vietnam), and Chiang Mai (Thailand), and resumed flights to Kolkata, India.
- MAB’s on time performance (OTP) improvement was impeded by aircraft constraints, with just a 1 per cent improvement year-on-year.
- Firefly’s loss widened year-on-year due to the commencement of its jet operations in Subang Airport. Load factor registered a 10 ppt increase year-on-year but yield declined by 19 per cent due to jets operation from Subang Airport.
- Amal by Malaysia Airlines recorded a 36 per cent improvement in its financial performance year-on-year.
Non-Airline Business Segment
- MAB Kargo, the Group’s cargo division, posted a higher operating profit, supported by additional capacity and higher load factor. The load for belly and freighter cargo was 8 percentage point and 3 percentage point higher respectively.
- AeroDarat Services, the ground handling solution provider, reported a remarkable improvement in its financial performance. Operating profit increased three times on the back of higher flights handled for the Group and foreign carrier business segment.
- MAB Academy, the Group’s premiere training and development arm, achieved better results than the previous year, while MAB Engineering Services faced challenges due to skilled workforce shortages.
In 2024, MAG and its subsidiaries received significant global recognition for their products and services. Malaysia Airlines was awarded the APEX Four-Star Major Airline status and ranked among the Top 10 for World’s Best Cabin Crew by Skytrax, while also moving up to #39 (from #47) in the World’s Best Airline rankings. The mainline also received awards for its in-flight dining, reflecting its commitment to enhancing its onboard offerings, including through the introduction of its Best of Asia menu. Additionally, the Enrich loyalty programme continued to earn accolades for its strong performance in member engagement and customer loyalty.
Remarks by Group Managing Director of MAG, Datuk Captain Izham Ismail
2024 has been a testament to MAG’s resilience and commitment to both growth and sustainability. While facing operational challenges, we have not only maintained profitability but also ensured that we are strategically positioned for the future. As we work towards our vision of Destination 2030, a future of stability and growth, we remain deeply focused on two guiding principles: commercial sustainability and nation building. Our vision is clear – to continue playing a key role in the nation’s economic development while ensuring the long-term strength and competitiveness of the Group.
A central element of this strategy is our continued investment in modernising and expanding our fleet. By 2030, we aim to operate a modernised, new generation narrowbody fleet of 55 aircraft comprising the Boeing 737-8 and 737-10, significantly enhancing our operational efficiency and flexibility to better serve both domestic and international markets. In parallel, we are progressively integrating the A330neo aircraft into our long-haul network, further elevating the travel experience for our customers. Two aircraft have already entered service, operating to Melbourne, Bali and Auckland, with eight more expected this year.
As our fleet modernisation progresses, we are also strengthening our network to maximise connectivity and meet growing demand. With forward bookings increasing approximately 9 per cent year-on-year, our mainline will continue to expand its presence in key markets including ASEAN, Australia, New Zealand, and South Asia, reinforcing our role as the gateway to Asia and beyond. This strategic growth is further complemented by our return to Paris on 22 March 2025, marking the second European destination in our network.
Meanwhile, our non-airline businesses will continue to support MAG’s broader strategic objectives. MAB Academy’s new simulator building, set to complete by Q2 2025, is poised to enhance regional training capabilities as a premiere aviation training provider. To support MAG’s fleet expansion and growing demand for maintenance, repair and overhaul (MRO) services, MAB Engineering Services will continue to strengthen its talent pipeline, while Hangar 4 in Subang (SZB) remains on track to open in Q1 2026, further enhancing our maintenance capacity. At the same time, MAG’s catering operations (MCAT) continues to grow from strength to strength, having transitioned to the new MCAT West facility, which is well-positioned to support the Group’s future in-flight catering aspirations and expansion.
These strategic investments not only position MAG for success but also demonstrate our ongoing contribution to the nation’s growth by fostering employment, improving connectivity, and driving economic activity. As we move forward, we remain committed to building a strong, commercially sustainable organisation that contributes meaningfully to Malaysia’s development, all while delivering exceptional value to the stakeholders we serve.
