Malaysia Aviation Group Profit Drops Sharply in 2024

Malaysia Aviation Group (MAG), parent of Malaysia Airlines, reported a net profit of RM54 million for 2024, a sharp decline from RM766 million in 2023, marking its second consecutive profitable year despite operational challenges. The profit drop was mainly due to an 18% capacity reduction caused by extended maintenance times and delays in new aircraft deliveries stemming from global supply chain disruptions. MAG recorded a robust EBITDA of RM788 million and an operating profit of RM113 million, with strong passenger and cargo load factors, especially in the premium segment. Full-year revenue dipped slightly by 1% to RM13.68 billion, while available seat kilometres rose by 6%. The group required no additional capital from its main shareholder, Khazanah Nasional, and ended the year with a RM3.0 billion cash balance. MAG continues to focus on fleet renewal, having committed to purchasing Boeing 737 MAX aircraft, but faces ongoing supply chain challenges.