Malaysia Airlines has reported its first annual profits in over a decade as it revealed its end-of-year performance figures for 2023. Strong demand and elevated airfares have assisted the airline’s return to the red after years of sustained losses, which were not helped by the loss of two of its long-haul Boeing 777-200ERs in quick succession.
On March 21, 2024, the carrier’s parent, Malaysia Aviation Group (MAG), posted an RM766 million ($162 million) profit for 2023, an increase from an RM344 million ($73 million) loss a year earlier, it said in a statement. According to a group statement, the recovery was assisted by a strong performance for the passenger airline unit, which disclosed an operating profit of RM1.1 billion ($233 million), the first time a positive profit figure has been reported since 2010, according to the statement.
“The bottom line was helped by factors including robust passenger traffic from the premium segment and increased international networks,” MAG Managing Director Izham Ismail said at a briefing.
“That outweighed higher operational and labor costs, a weaker ringgit, and supply-chain challenges,” he added.
The airline carried 14.5 million passengers in 2023, up a considerable 46% from the previous year. Additionally, it reached 86% of pre-pandemic capacity by December 2023 and as such, is expecting to complete its full post-pandemic recovery in the second quarter of 2024.
“While 2023 marked a remarkable resurgence, 2024 is poised to be the year where we solidify our credibility,” Izham said. “The group will add 12 new aircraft to its fleet in 2024 and wants to operate 100 by 2033.”
Malaysia Airlines’ financial performance has struggled for the past decade, particularly after the Kuala Lumpur-based carrier was forced to endure the double tragedies of the disappearance of MH370 in 2014 as well as the downing of MH17 over Ukraine just months afterward. The two fatal incidents had the adverse effects of deepening the airline’s financial losses and driving a slump in its share price which eventually led to the company being delisted from Malaysia’s stock exchange.
The carrier is currently in the process of renewing its short-haul fleet with Boeing 737 MAX 8s replacing its 42 older 737-800s fleet. According to ch-aviation, the airline has so far taken delivery of three of the 25 MAX 8s it has on order. Elsewhere, the carrier operates six Airbus A330-200s, 15 A330-300s, and seven A350-900s. It also has three A330-200Fs operating for its cargo division. The carriers’ regional subsidiaries, MAS Wings, and Firefly operate several ATR72s and DHC-6 Twin Otter turboprops.