(Bernama) - Malaysian Airline System Bhd (MAS) recorded a net loss of RM2.52 billion, on the back of RM13.9 billion in revenue, for the financial year ended Dec 31, 2011.
For the fourth quarter, the national carrier recorded RM1.28 billion in net loss, on a turnover of RM3.68 billion, said group chief executive officer Ahmad Jauhari Yahya.
He said the bottom-line group losses for 2011 underscored the imperative need for the airline to immediately adopt strong measures to stop the “bleeding".
“This includes staff redeployment, increasing productivity and efficiency, relentless cost control and making further reviews.
“We are also implementing an aggressive sales and marketing strategy,” he told a press conference here today.
Ahmad Jauhari said the group’s full year performance was severely impacted by a 21% increase in expenditure of RM16.2 billion, from RM13.41 billion in 2010, previously.
He said the higher expenditure was due to a 33% increase in fuel cost of RM5.85 billion and a 15% increase in non-fuel expense of RM10.43 billion.
The rise in non-fuel expense was mainly due to provisions totalling RM1.09 billion made in the fourth quarter for stock obsolescence, redelivery of aircraft and impairment of freighter aircraft.
Ahmad Jauhari said the accounts for the year under review recognised provisions and escalating operational costs which, although painful, provided a holistic snapshot of the organisation and full knowledge of the company’s actual position.
For the full year, Malaysia Airlines saw capacity (available seat per kilometre) increase seven percent, passenger traffic up five percent but lower seat factor reducing to 75%.
He said revenue and average fares across all classes showed improvement throughout the year, particularly in the front-end cabins.
However, there was an overall drop in seat factor as the airline strived for better yields.
On a regional performance basis, the domestic and short-haul, intra-Asean services continued to be key markets for the company, with these segments reporting positive growth on a quarterly, as well as, on a year to-date basis, he added.
Meanwhile, the cargo division suffered in line with an overall slowdown of the industry, globally.
Revenue dropped 14%, capacity decreased nine percent while yield increased two percent.
Ahmad Jauhari also said MASkargo recorded a loss before tax of RM19 million in 2011 compared with a profit of RM141 million in the previous year due to higher fuel costs and impairment of its A330 freighter fleet.
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I cannot remember when was the last time reading about MAS making any profits at all.
Honestly, this national carrier making such a big loss is no more news...it's expected.
MAS making it back in black IS news and would be an event to celebrate by the shareholders.
Idris Jala after being picked and appointed thought he can help solved the company's problems and sold some assets to help the company breath, but nope. It didn't help.
This outfits is unsaveable...that is what I feel.
When such big outfits had been on such a big loss for three years straight, it definitely need a decade to overcome the situation and crawl to the recovery line.
Or perhaps not at all due to all factors and ever increasing expenditures, which is unavoidable.
Let face the fact.
There are huge multinationals that had been controlling the market shares crashed and can't keep up. Which I think MAS should just be dissolved and if Malaysia want to have their own national carrier, make sure it is run by smart and honest people.
Charging very high ticket prices will not promise you good line of passengers.
And blaming it on high fuel prices were just lame.
When passengers are being charged for the fuel prices increment worldwide, you MAS, are not bearing it all 100 percent yourself. The surcharge is not little for paying customers.
To me that excuse was like blaming it on the rain when one can't find anything concrete to put the blame on and refuses to blame the management per se.
And Ahmad Jauhari Yahya -- you are right on one thing.
It's bleeding. And it's bleeding profusely hard.
Internal bleeding was the initial reason, and now it has created major parts crash and bleed out which certainly spell dying...sooner or later.
Bailing out by the government...again? Until when?
Implementing aggressive sales and marketing strategy would not help you much MAS.
Maybe a mere 15% if there is luck and hard persistence sell because you know well that other neighbouring carrier can offer much cheaper rates to same sector, and people rather flew down to neighbouring country to catch a flight to EU.
On the local front, your nemesis is controlling it, and they are doing it well. The airport in Sepang during festive holidays is worst than bus stations packed with people of all kinds.
No doubt you created your own brand of local flight to counter attack , but when the prices of your baby is 15% lesser than what you offer, and much expensive than your nemesis, for people like me, we'd rather pay that 15% and get a better and bigger plane.
Furthermore, your baby is not fiery enough and it didn't cover many small airports in the country.
So why have one?
And why not swallow the fact that MAS can't be saved, and aiding it would only make another hole on another accounts bigger....
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