Malaysia Airlines suffers 59 percent loss since MH370 disappearance

first_imgDespite noticeable traffic growth and cost savings efforts, with core airline revenue up eight per cent year-on-year on the back of 19 percent increase in capacity, the group’s overall performance was let down by weak cargo and other revenues. As Malaysia Airlines struggles with its tough financial position and challenging road ahead to return to profit, the Group plans to renew its business models to ensure they are sustainable. “While the search for MH370 continues today more than two months since it disappeared, our Group needs to accelerate efforts to improve its revenue stream and better manage our high costs which have increased in line with greater capacity,” Malaysia Airlines Group chief executive officer Ahmad Jauhari Yahya said. Source = ETB News: Lana Bogunovich “We maintain our commitment to remain competitive, to deliver an exceptional quality product and service with safety as our utmost priority, and to provide returns to our shareholders in the long-term. Furthermore, since the disappearance of flight MH370, of which two thirds of the 239 passengers on board were Chinese, sales from China fell by a drastic 60 percent, with a high rate of cancellations and significant drop in long-haul travel.center_img This marks the airline’s fifth quarterly loss, with the MH370 tragedy further adding pressure to carrier which was already grappling with surging fuel prices, operational costs, a weakening of the Ringgit, and a tough competitive environment. Malaysia Airlines has reported a net loss of USD $137.8 million for the quarter ending 31 March, down 59 percent compared to the same time last year, as a result of the significant drop in revenue from the Chinese market since the disappearance of flight MH370 two months ago. “This need has become even more urgent for Malaysia Airlines’ future survival and sustainability in a market that is not showing any signs of letting up on competition. “MH370 has brought out the best of our Malaysia Airlines team to stand united to face the crisis and we will be leveraging on this team spirit to fight for our future.”last_img

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