Fuel drowns Malaysian Airlines results

Malaysia Airlines System's (MAS) results sank faster than the Titanic at the end of June quarter suffering from a loss of RM535 million compared to RM875 million profits in 2009. A 44 percent increase in fuel prices pushed MAS into the red, adding RM338 million to expenditure compared to last year, Asia One Business reported.

Malaysian Airlines Chief Executive Tengku Datuk Azmil Zahruddin said it was not just MAS that suffered losses because "the volatility of the fuel prices remains a key challenge for the industry". Despite these considerable losses researchers and stock analysts are backing the company after passenger numbers increased to 74 percent in April - June compared to 65.8 percent same time last year.

"Given that passenger load factor has recovered to the pre-crisis level, the focus for second half of 2010 shifts to strengthening yield and intensifying fuel cost mitigating initiatives," Mr Zahruddin said.??

Malaysian Airlines shares are down to 3.3 percent this year but analysts are supporting the company projecting a promising future particularly after the fleet expansion in 2012. MAS placed an order for six Airbus A380 planes in 2003 and is expecting the first aircraft to arrive in April 2012.

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