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| Malaysia Aviation Group |
A third consecutive operating profit and big plans in the skies
Resilience Takes Flight
Malaysia Aviation Group (MAG) has wrapped up 2024 with strong financial footing and renewed optimism for the future, reporting a positive Net Profit After Interest and Tax (NIAT) of RM54 million, and a solid operating profit of RM113 million—marking the third consecutive year of profitability.
Even in the face of operational challenges, including proactive capacity reductions and delays in aircraft delivery, MAG posted an EBITDA of RM788 million, a testament to its strategic adaptability. With a load factor of 80%, up three percentage points from the previous year, and passenger numbers rising to 16.6 million, the Group continues to show that its core business is thriving.
A Strategic Shift to Strength and Sustainability
MAG’s ability to stay profitable, even after reducing capacity by 18% in the final quarter of 2024, speaks volumes about the Group’s operational efficiency and market strategy. These cuts, although impacting short-term revenue, were necessary due to extended maintenance periods and supply chain disruptions. Despite this, the Group maintained a cash balance of RM3 billion, without requiring capital injections from its main shareholder, Khazanah Nasional Berhad, since 2021.
A notable boost also came from a reversal of impairments amounting to RM426 million—linked to assets initially written down during the COVID-19 crisis—reflecting improved market conditions and operational performance.
Airline Performance: Highs and Headwinds
Malaysia Airlines Berhad (MAB), MAG’s flagship airline, achieved a RM139 million operating profit. Although this was a significant drop from the previous year due to lower yield and capacity cuts, MAB saw a 17% increase in passenger volume and a load factor improvement to 81%.
MAB also grew its international network with new routes to Male (Maldives), Da Nang (Vietnam), and Chiang Mai (Thailand), while resuming services to Kolkata, India. Despite the headwinds, Malaysia Airlines maintained a strong performance reputation, earning APEX Four-Star Major Airline status, being ranked among the Top 10 for World’s Best Cabin Crew, and climbing to #39 in the Skytrax World’s Best Airline rankings.
Meanwhile, subsidiaries Firefly and Amal by Malaysia Airlines faced mixed outcomes. Firefly’s expansion into jet operations led to short-term losses, while Amal improved its financial performance by 36% year-on-year.
Cargo and Ground Operations on the Rise
MAG’s non-airline segments demonstrated robust growth. MAB Kargo posted higher profits driven by increased capacity and stronger load factors for both freighter and belly cargo. AeroDarat Services, the Group’s ground handling provider, tripled its operating profit, supported by increased flight handling for both MAG and external carriers.
MAB Academy, the Group’s training division, posted year-on-year improvement, while MAB Engineering Services faced talent challenges amidst rising demand for aircraft maintenance.
Looking to 2030: A Vision for the Skies
Group Managing Director Datuk Captain Izham Ismail reaffirmed MAG’s long-term ambition through its Destination 2030 strategy. At its core is a modernised fleet featuring 55 new-generation Boeing 737-8 and 737-10 aircraft, and the ongoing integration of A330neo aircraft, already flying to Melbourne, Bali, and Auckland, with more to come.
MAG’s global reach is also expanding. With forward bookings up 9% year-on-year, the Group is eyeing further growth in ASEAN, Australia, New Zealand, and South Asia, and is set to return to Paris in March 2025—its second European destination.
Investing in Infrastructure and Talent
MAG is also bolstering its support systems. MAB Academy’s new simulator building, due by Q2 2025, will boost regional pilot training capabilities. Meanwhile, Hangar 4 at Subang Airport, set to open in Q1 2026, will enhance maintenance capacity. MAG’s catering division, now operating out of the new MCAT West facility, is also scaling up to support growing demand.
These efforts are more than just operational—they are aligned with Malaysia’s broader economic aspirations. By investing in jobs, connectivity, and global partnerships, MAG is not only flying high but helping to lift the nation with it.
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