KUALA LUMPUR (April 21): Malaysia Airlines Bhd’s parent company Malaysia Aviation Group (MAG) reported on Thursday (April 21) earnings before interest, taxes, depreciation, and amortisation (EBITDA) of RM433 million for the financial year ended Dec 31, 2021 (FY21) from a loss before interest, taxes, depreciation, and amortisation of RM1.761 billion a year earlier on MAG’s successful restructuring and cargo business revenue growth at a time when the global aviation industry continued to contend with the impact of Covid-19-driven movement restrictions.

In a statement, MAG said its cargo business arm MAB Kargo Sdn Bhd’s revenue grew 52% to RM3 billion in FY21 from a year earlier.

“Despite lower passenger traffic and reduced capacity for Malaysia Airlines by 62% and 71% respectively in 2021, Malaysia Airlines recorded 57% higher yield in passenger revenue, assisted by its Airline Revenue Maximisation Solution (ARMS) which provides a complete and comprehensive picture of an airline’s revenue and cost ecosystem, personalising fares and offers to customers at a willing-to-pay rate using predictive forecasting features.

“The restructuring the group (MAG) undertook in 2021 gave MAG the opportunity to holistically repair its balance sheet and address decades-long legacy issues, resulting in a reduction in the group’s liabilities of over RM15 billion, and eliminating RM10 billion in debt. Lower operating cost from its cost savings/avoidance initiatives across the group as well as lower leasing cost post its successful restructuring further contributed to the improved performance in 2021,” MAG said.

With the gradual reopening of international borders, MAG said it is seeing strong passenger demand and sales contributing to the group’s solid cash balance.

MAG said cargo operations will continue to lead the aviation market as demand for cargo movement in the Asia-Pacific region is expected to grow 5%.

“Malaysia Airlines and its sister airlines will gradually add capacity for both domestic and international routes, expecting to achieve more than 70% capacity to pre-pandemic level.

“Firefly has reinstated its jet operations from new hub, Penang International Airport, starting April 11, 2022,” MAG said. Read more

Malaysia Airlines parent company reports improved FY21 financial performance on successful restructuring, cargo revenue growth