Quotes: 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
 Jul 30 2015 - Egypt- Trial of businessman Ehab Talaat postponedqDaily News Egypt
(MENAFN - Daily News Egypt) The trial of prominent businessman Ehab Talaat was postponed to 26 December on Tuesday for an expert report on the matter.Talaat is being sued by the Al-Ahram Foundation ...

 Jul 30 2015 - Egypt participates in UN counter-terrorism meetingDaily News Egypt
(MENAFN - Daily News Egypt) An Egyptian delegation participated Tuesday in the UN counter-terrorism meeting in the Spanish capital, Madrid, and discussed efforts to tackle militancy.Egypt also ...

 Jul 30 2015 - Egyptian court postpones verdict in Al Jazeera journalists' retrialDaily News Egypt
(MENAFN - Daily News Egypt) A court in the Egyptian capital, Cairo, has postponed the verdict in the retrial of three Al Jazeera journalists, jailed for aiding a terrorist organization with false ...

 Jul 30 2015 - Egypt- 'Will justice be served this Thursday?' (1):JournalistsDaily News Egypt
(MENAFN - Daily News Egypt) An Egyptian court will conclude one of Egypt's most hotly debated cases since the ouster of the Muslim Brotherhood regime in 2013, and one of the longest trials the ...

 Jul 30 2015 - Al-Jazeera re-trial case adjourned to 2 AugustDaily News Egypt
(MENAFN - Daily News Egypt) The Egyptian court was to conclude Thursday one of Egypt's most debated cases since the toppling of the Muslim Brotherhood's regime, also among the longest trial the ...

 Jul 30 2015 - Egypt- Trial against Fatima Naoot continuesDaily News Egypt
(MENAFN - Daily News Egypt) The prosecution at the Sayeda Zeinab Misdemeanour Court decided on Wednesday to postpone the case against Fatima Naoot, who is charged with contempt of religion.In turn, ...

 Jul 30 2015 - Ooredoo Oman profit up 18.7 percent in H1MENAFN
(MENAFN) Omani Qatari Telecommuni-cations Company (Ooredoo), has reported an 18.7 percent increase in its net profit for the first half of this year.The company's revenues for the first half of 2015 ...

 Jul 30 2015 - Dubai real estate down, under pressureThe Arabian Post
(MENAFN - The Arabian Post) The Dubai residential market continues to face downward pressure as rents and sale prices decline. It's perhaps indicative of a systemic shift that the current phase's ...

 Jul 30 2015 - Consumer choice, innovation 'key drivers of aviation sector'The Arabian Post
(MENAFN - The Arabian Post) Consumer choice and innovation are the fundamental drivers of competition in the international airline industry, said Etihad Airways president and CEO James Hogan at the ...

 Jul 30 2015 - Qatar's transport sector posts double-digit growth in H1MENAFN
(MENAFN) Qatar's transport sector witnessed a healthy double-digit expansion in profitability in the first half of this year, mainly on the back of earnings in logistics segment.The cumulative net ...

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

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

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
Economic Calendar
Financial Glossary


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


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help