Malaysia Airlines' 2Q revenue down on-quarter, sees 'stronger' 3Q

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KUALA LUMPUR (Sept 8): Malaysia Airlines Bhd said second quarter revenue fell in quarterly terms on "soft demand" during the Ramadan fasting month.

In a statement today, Malaysia Airlines said passenger load factor fell to 68.6% in the second quarter ended June 30, 2016 (2QFY16), from 68.9% in 1QFY16.  

During 2QFY16, Malaysia Airlines said it had more passengers at 3.3 million versus 3.2 million in the preceding quarter.

"As expected, the second quarter was weaker due to seasonality, with revenue down quarterly due to soft demand during Ramadan.

"Overall, the airline and the group are expected to record a loss for this fiscal year, but management remains confident that both will meet and potentially surpass targets, based on the traction gained in the turnaround efforts thus far," Malaysia Airlines said.

Malaysia Aviation Group Bhd owns 100% of Malaysia Airlines.

Malaysian Government-owned investment arm Khazanah Nasional Bhd wholly-owns Malaysia Aviation.

Looking ahead, Malaysia Airlines said it expected to contend with more competition in Malaysia, as other airlines added narrow body aircraft into their fleet.

In addition, Malaysia Airlines said global business class yields were under pressure. The company said it had a plan to address its commercial challenges.

"The airline will also be aggressively engaging with travel agents, a key target audience in Malaysia.

"Forward booking patterns are already strengthening in Q3, and we expect improved performance on business class loads in Q4," the group said.