Written by Yong Min Wei
Wednesday, 25 November 2009 18:21
KUALA LUMPUR: MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) posted a net loss of RM299.62 million for the third quarter ended Sept 30, 2009 (3QFY09) as compared to a net profit of RM38.09 million a year ago after taking into account a derivative loss of RM202.1 million.
According to a Bursa Malaysia filing Nov 25, the group’s derivative loss was incurred from foreign currency hedging contracts, interest rate-hedging contracts, and fuel-hedging contracts.
Revenue for the third quarter fell 28% to RM2.96 billion from RM4.11 billion a year ago, with a basic loss per share of 17.93 sen versus basic earnings per share of 2.28 sen previously.
MAS said it recorded an operating loss of RM73.3 million in 3QFY09, a turnaround from an operating profit of RM44.3 million in 3QFY08 caused by lower operating revenue, which was in line with the decline in global travel and cargo operations as a result of the current economic downturn.
For the nine months ended Sept 30, 2009, the group reported a net loss of RM119.50 million as against a net profit of RM198.13 million in the same period last year. Revenue dipped to RM8.26 billion from RM11.64 billion previously.
On its current year prospect, the group said outlook for the fourth quarter continued to be challenging as passenger traffic outlook in the fourth quarter was expected to decline by 4% and cargo operations by 14% as per the International Air Transport Association’s (IATA) June forecast.
“There is an early sign of improvement in passenger and cargo traffic, partly stimulated by intensive marketing campaigns but yields remain under pressure,” the company pointed out.
Nevertheless, MAS said it Business Transformation Plan 2 (BTP2) would remain its business strategy to carry them through the current and future turbulences, adding that it was accelerating its BTP2 by focusing on three core areas.
They are enhancing customer satisfaction, generating revenue and intensifying structural cost reduction to speed up its transformation into the World’s Five Star Value Carrier.
MAS shares on Nov 25 shed 6 sen to close at RM3.10 with 392,500 shares traded.