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
 Dec 1 2015 - Opec oil output increases in Nov, led by Iraq, SaudiMENAFN
(MENAFN) Opec oil output grew in Nov compared with the previous month, led by a rebound in Iraqi exports.Moreover; Opec supply increased in Nov to 31.77mn containers per day, from 31.64mn in ...

 Dec 1 2015 - Etihad Airways enhances presence in East Africa with new service between Dar Es Salaam and Abu DhabiEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) ABU DHABI 1st December 2015 (WAM) --- Etihad Airways the national airline of the United Arab Emirates today enhanced its presence in East Africa with the ...

 Dec 1 2015 - Hazza bin Zayed statement on national day UAENationalDay44Emirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) ABU DHABI 1st December 2015 (WAM)--H.H. Sheikh Hazza bin Zayed Al Nahyan National Security Advisor has paid a glowing tribute to the founding fathers who ...

 Dec 1 2015 - Rising foreign investment in Dubai realty to ensure stability in real estate market: H Holding EnterpriseEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) DUBAI 1st December 2015 (WAM) --- The growing number of foreign investors in Dubai property will lead to more stability in the real estate market according ...

 Dec 1 2015 - Mansour bin Zayed's statement on national day UAENationalDay44Emirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) ABU DHABI 1st December 2015 (WAM)H.H. Sheikh Mansour bin Zayed Al Nahyan Deputy Prime Minister and Minister of Presidential Affairs has extended his ...

 Dec 1 2015 - ST Topping Pattern Begins to Emerge in USDOLLARDailyFX
(MENAFN - DailyFX) On a fundamental basis, we were already concerned about the viability of a USDOLLAR Index bull flag breakout given the wave of impending "high" level event risk at the end of this ...

 Dec 1 2015 - Saudi- Competition Council launches awareness caign to combat collusion in public tendersSaudi Press Agency
(MENAFN - Saudi Press Agency) Riyadh 19 Safar 1437 AH December 1 2015 SPA -- The Competition Council has launched its 5th awareness campaign for the second year of publication of competition culture ...

 Dec 1 2015 - Competition Council launches awareness caign to combat collusion in public tenders 2 RiyadhSaudi Press Agency
(MENAFN - Saudi Press Agency) The campaign also aims to deliver the message of the Council using a variety of methods of press and electronic ads and the design and production of audio-visual films ...

 Dec 1 2015 - Kuwait Stock Exchange ends session with mixed boardsSaudi Press Agency
(MENAFN - Saudi Press Agency) KUWAIT Safar 19 1437 December 01 2015 SPA -- Kuwait Stock Exchange (KSE) ended its session Tuesday in a mixed board with the price index up by 0.98 points to reach 5803 ...

 Dec 1 2015 - Muscat Securities Market Gains 9 PointsSaudi Press Agency
(MENAFN - Saudi Press Agency) Muscat Safar 19 1437 December 01 2015 SPA -- Muscat Securities Market (MSM) general index (30) today added (9.9) points comprising a rise by (0.18%) to close at ...





Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  

Middle East North Africa - Financial Network

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


Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks

Saudi Arabia 

Economic Calendar
Financial Glossary

Financial Calculators

RSS Feeds [XML]

Corporate Monitor


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