Malaysia Aviation Group sees strong passenger demand amid reduced capacity in 2024, BA

Malaysia Aviation Group (MAG) has reported a net profit after tax of RM54 million for the financial year 2024, securing its third consecutive year of positive operating results. The group achieved an operating profit of RM113 million and an EBITDA of RM788 million, despite contending with global supply chain disruptions that forced capacity reductions during the traditionally strong fourth quarter.

The airline group maintained a cash balance of RM3 billion as of December 31, 2024, with no new capital injections from its shareholder, Khazanah Nasional Berhad, since 2021. Passenger load factor for the year averaged 80per cent, up three percentage points from 2023, while overall passenger numbers grew to 16.6 million.

Malaysia Airlines, the group’s flagship carrier, posted an operating profit of RM139 million, significantly lower than the previous year’s RM1.09 billion, largely due to yield pressures and the impact of network cuts. The airline added new routes including Male, Da Nang and Chiang Mai, while resuming services to Kolkata.

Non-airline businesses also posted improved performance. MAB Kargo recorded higher profits driven by increased cargo capacity and demand, while ground-handling division AeroDarat saw a threefold rise in operating profit due to a surge in flight handling.

Datuk Captain Izham Ismail, Group Managing Director of MAG, said the results reflect resilience despite headwinds: “We remain focused on long-term sustainability, fleet modernisation, and enhancing connectivity. These efforts align with our vision of Destination 2030 and Malaysia’s broader economic growth.”

MAG plans to progressively introduce new Boeing 737 and A330neo aircraft into its fleet while expanding its European presence, including the return of direct flights to Paris this year.