Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Malaysia Airlines posts Q2 net loss of 98 mln  Join our daily free Newsletter

MENAFN - Arab News - 28/08/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Arab News) KUALA LUMPUR: Malaysia Airlines reported another financial loss and warned of poor second-half earnings as passenger bookings tumbled in response to the loss of two aircraft in separate disasters this year.

In a statement to the stock exchange Malaysian Airline System Bhd (MAS) said its second-quarter net loss grew to 307.04 million Malaysian ringgit (97.6 million) from a net loss of 175.9 million ringgit in the same period a year earlier.

The result was an improvement from the net loss of 443 million ringgit it reported in the first quarter.

The April-June earnings are the first to fully reflect the impact on sales of the unexplained disappearance of Flight MH370 in March.

The airline is set to be taken private by its majority shareholder state fund Khazanah Nasional Bhd in a move to revamp its business devastated this year by MH370's loss and the shooting down of Flight MH17 over Ukraine in July.

MAS said the MH17 incident had derailed 'all the hard work and effort' to regain market confidence and sales it had put in after the loss of MH370.

The two tragedies are expected to hit earnings in the months from July to December as average weekly bookings declined 33 percent with numerous flight cancelations immediately after the MH17 incident said MAS.

Seat load factors fell 6.7 percentage points to 74 percent next to a 9 percent increase in capacity during the quarter. Operating expenses rose 2 percent on higher fuel costs.

'The fact that both incidents have occurred within such a short span of time had exacerbated the situation and severely damaged the airline's brand and business reputation accelerating the need to restructure the company' it said.

Even before the aircraft tragedies the carrier that was one of Southeast Asia's most prestigious airlines in the 1990s had steadily been squeezed between high-end rivals such as Singapore Airlines and Asian budget carriers. The company has not made an annual profit since 2010.

The company's shares will be suspended on Friday ahead of the announcement of its planned restructuring by Khazanah a source said.

About a quarter of the carrier's nearly 20000 staff may lose their jobs in the overhaul with some international routes set to be abandoned as new management is brought in according sources.

The impact of the March 8 disappearance of Flight MH370 bound for Beijing from Kuala Lumpur had tipped the carrier into what was then its worst quarterly performance in more than two years.

Sales in China declined 60 percent in March after the incident it said earlier this year.

 


Arab News




  MENA News Headlines
 Oct 23 2014 - Kuwait: 13 sentenced over speechArab Times
(MENAFN - Arab Times) KUWAIT CITY Oct 22 (Agencies): A Kuwaiti defense lawyer says a court in the Gulf nation has convicted and sentenced 13 people to two years in prison each for reading aloud a ...

 Oct 23 2014 - Kuwait- Trade cheats face lawArab Times
(MENAFN - Arab Times) KUWAIT CITY Oct 22 (KUNA): The Ministry of Commerce and Industry is taking it upon itself to strike with a firm hand any businesses that practice commercial fraud against ...

 Oct 23 2014 - Kuwait- Crown Prince chairs National Security Council sees dangerArab Times
(MENAFN - Arab Times) KUWAIT CITY Oct 21 (KUNA): His Highness the Crown Prince Sheikh Nawaf Al-Ahmad Al- Jaber Al-Sabah on Tuesday chaired the first meeting of the National Security Council with its ...

 Oct 23 2014 - test with imageABN Newswire
(MENAFN - ABN Newswire)   ...

 Oct 23 2014 - Saudi Almunajem acquires 25 percent stake in France's DouxMENAFN
(MENAFN) Almunajem, the Saudi-Arabian food group, announced it has acquired a stake of 25 percent in the Groupe Doux, the French poultry producer, Saudi Gazette reported.Almunajen is the main ...

 Oct 23 2014 - Oman's PSC net profit down 25.2 percent in 9MMENAFN
(MENAFN) Oman's Port Services Corporation (PSC) announced it has posted a decline in its net profit by 25.2 percent for the January-September period of this year due to the termination of major cargo ...

 Oct 23 2014 - Saudi's Al Tayyar profit up 13.5 percent in Q3MENAFN
(MENAFN) Saudi Arabia's Al Tayyar Travel Group announced it has posted an increase in its net profit, which increased by 13.5 percent during the July-September period due to an increase in the ...

 Oct 23 2014 - Dar Al-Arkan to invest USD267m on projects in 2015MENAFN
(MENAFN) Dar Al-Arkan Real Estate Development Co., Saudi Arabia's largest developer, announced it is planning to spend over USD267 million on projects next year as part of its plan to achieve a 10 ...

 Oct 23 2014 - UAE's Mazaya net profit hits USD in 9MMENAFN
(MENAFN) Al Mazaya Holding Company announced that it recorded a net profit of USD20 million in the January-September period of this year, compared to USD 2.920 million recorded during the ...

 Oct 23 2014 - Saudi Arabia's ACWA to focus on renewable energy projectsMENAFN
(MENAFN) ACWA Power, the Saudi Arabia-based power and water project developer, announced it is planning to secure financing for USD15 billion worth of projects, nearly half of which are in renewable ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help