Malaysia Airlines posts $78 million 2010 profit

Malaysia Airlines 777-200. Photo: By Rob Finlayson.

Malaysia Airlines on Friday reported 2010 net income of MYR237.3 million ($77.6 million), down 54.6% from a MYR522.9 million profit in 2009 that benefited from a MYR1.16 billion derivative gain.

Despite the earnings drop, the carrier promised to press ahead with aggressive expansion. MAS took delivery of three Boeing 737-800s in the 2010 fourth quarter and will receive four more -800s this year. Additionally, the carrier in April will take delivery of the first of five A330-300s slated to arrive in 2011. MD and CEO Azmil Zahruddin said, "We have put in solid building blocks and are positioning ourselves to capitalize on the action in our backyard, with Asia/Pacific demonstrating strong growth."

Full-year 2010 revenue grew 14.5% year-over-year to MYR12.98 billion while expenses heightened 9% to MYR13.32 billion. Operating profit was reported at MYR263.8 million, reversed from a reported operating loss of MYR614.8 million in 2009. Full-year traffic increased 15% to 37.84 billion RPKs on a 3.7% rise in capacity to 49.62 billion ASKs, producing a load factor of 76.2%, up 7.4 points.

MAS said its fourth-quarter yield improved 6% compared to the 2009 December period as RASK heightened 6%to MYR0.188 and CASK decreased 7% to MYR0.175.

Looking at 2011, Zahruddinremained cautious, citing already high fuel prices that are rising even further owing to Middle East unrest, as well weak economies in Europe and North America. "Competition is also expected to intensify. In a challenging and unpredictable industry such as this, we are vulnerable to many things beyond our control which can quickly have an impact on the business."