Malaysia Airlines recorded stronger improvement in the fourth quarter ended Dec 31, 2016 with higher passenger load factor and higher traffic. Customer satisfaction also reached an all-time record in October.
Malaysia Aviation Group Bhd CEO Peter Bellew said the airline remained focused on cost control and had identified a further RM400mill of cost reductions in 2017 to offset US Dollar strength. The National Carrier said bookings accelerated in the last quarter thanks to a focus on the premium business traveller and all-inclusive economy fares.
“Our focus is to be a five-star premium Asian airline, offering the best of ‘Malaysian Hospitality’ to 15 million customers a year, travelling to 54 destinations in 21 countries,” Bellew said.
“Looking forward, the group remains cautious in the outlook for 2017, where the weaker Ringgit to the USD, overcapacity, and intense competition are expected to be the dominant themes for the year.
“The group continues to maintain strong year on year load performance and believes it will improve on targets for 2017, barring unexpected adverse declines in 2017 airfares due to overcapacity and intense competition,” he said.
MAS’ Boeing 737 fleet are now operating with a 35 minutes turnaround time (TAT) with effect from Oct 27, 2016 for the new winter season.
It said this would enable the group to reduce its aircraft requirement by up to four 737s in 2017.