Thai and Malaysian airlines report profit drop

Net profit for fourth quarter down by 67% and 65%, respectfully

 

 

The well-established Asian flag carriers Thai Airways and Malaysia Airlines have both reported a fourth-quarter net profit slump of 65-67%, compared to the same period in 2009. Malaysia Airlines’ net profit declined by 65% to MYR 225.9 million (€53.8 million), while Thai Airways suffered a 67% drop in profit to THB 2.94 billion (€69.3 million). The figures fly in the face of IATA figures indicating a recovery for the sector.
Malaysia Airlines said that the previous year’s figures had been inflated by derivative gains from the carrier’s fuel hedging and it warned that it could be seriously impacted this year by the high cost of fuel.
“It is difficult to predict how the price will behave over the course of the year,” Malaysia Airlines CEO Azmil Zahruddin said. “At this point, we have restructured our hedge levels to 25% of fuel requirements at USD$88 for 2011, in line with our peers.”
Thai Airways blamed rising wage costs and lower foreign exchange gains, bringing net profit down lower than predicted in forecasts. But a recovery in tourism will benefit the carrier in 2011 and it has raised fuel surcharges in an effort to cover the high fuel costs.
Reuters
[pictured: Thai Airways cabin crew]

x

Check Also

Singapore Airlines, business, premium economy, product, long-haul, Stockholm, first class

Skytrax 2018 airline awards, the best airline in the world is Singapore Airlines

The Skytrax awards were presented this week at the Langham Hotel in London and one Nordic carrier did well.

airlines, air travel, demand, passengers, business, IATA, 2016, Europe, world, RPK, capacity, Alexandre de Juniac

Farnborough Air Show day 1, airlines announced new aircraft orders for more than USD 20 billion.

The bi-annual airshow at Farnborough airport outside London is the world’s largest display of aircrafts, both civil and military, together with the bi-annual Paris Air Show, at Le Bourget airport. The Farnborough Air Show is on during July 16-22 and Standby Nordic will report on relevant news.

IATA, ACI, Eurocontrol, capacity, airports, tight, crunch, compatition, slots, management, congestion, air travel, airlines, EU, Europe, report, study

Airlines urge airports to ease capacity crunch

IATA weighs into the debate about the growing squeeze at airports, saying airports and governments “must do more”.

IATA, Al Baker, Qatar Airways, CEO, management, gender equality, airlines, board, man, women

Qatar CEO: Only a man can run an airline

The new chairman of the International Air Transport Association embarrasses his colleagues.

air travel, airlines, costs, 2018, warning, IATA

Airlines cut profit forecasts as costs soar

Rising costs such as fuel, staff, rising interest rates and trade tensions are adding to airlines' woes in 2018.

air travel, 2018, delays, flights, number, Eurowings, Germany, Ryanair, airlines, Condor, Air Berlin, fleet, strike, weather

Europe air passenger demand sharply down

The factors behind the trend are a slowing of economic growth and fewer discounts due to higher costs.