KUALA LUMPUR (Feb 29): Malaysian Airline System Bhd (MAS) posted net losses totaling RM1.277 billion in the fourth quarter ended Dec 31, 2011 versus net profit of RM225.92 million a year ago as it severly affected by high fuel costs and non-fuel expenses.
It said on Wednesday that its revenue was RM3.678 billion, almost unchanged from the RM3.669 billion a year ago. Loss per share was 38.22 sen compared with earnings per share of 6.76 sen.
For the financial year ended Dec 31, 2011, MAS posted net loss of RM2.524 billion compared with net profit of RM234.47 million a year ago. Its revenue was 2% higher at RM13.901 billion compared with RM13.585 billion a year ago.
“The group’s full year performance was severely impacted by a 21% increase in expenditure over the previous year (2011: RM16.20 billion versus 2010: RM13.41 billion) attributed to a 33% year-on-year increase in fuel cost (2011: RM5.85 billion versus 2010: RM4.38 billion) and a 15% increase in non-fuel expenses (2011: RM10.43 billion versus 2010: RM9.03 billion).
MAS chief executive officer Ahmad Jauhari Yahya said the bottomline group losses for 2011 underscored the imperative need for MAS to immediately adopt strong measures to stop the bleeding.
“These include staff redeployment, increasing productivity and efficiency, relentless cost control and making further route reviews. We are also implementing an aggressive sales and marketing strategy,” he said.
Source: The Edge.