Tuesday, November 22, 2011

MAS continues losing streak

KUALA LUMPUR (Nov 22): MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) continued its losing streak when it posted RM477.59 million net loss for the third quarter ended Sept 30, 2011, compared to net profit RM233.23 million a year earlier.

The airline said the loss was due mainly to higher fuel cost, derivative loss of RM70 million and unrealised foreign exchange loss of RM195 million.

It said on Nov 21 that its revenue for the quarter rose to RM3.56 billion from RM3.39 billion in 2010.

Loss per share was 14.3 sen compared to earnings per share of 6.98 sen in 2010, while net assets per share fell to 69 sen from RM1.06 a year earlier.

This is the third consecutive quarterly loss for the airline since the beginning of this financial year.

For the nine months ended Sept 30, the airline posted net loss RM1.25 billion compared to net profit RM8.55 million.

Reviewing its performance, MAS said the operating environment for airlines in general remains challenging for the fourth quarter of 2011.

Not only was jet fuel price staying high, but the worsening economic situation in Europe was being translated into weak forward booking profiles for long-haul routes, it said.

'Management is undertaking immediate counter-measures to address this situation via heightened dynamic revenue management activities, and other commercial initiatives to mitigate the situation.

'Notwithstanding management's efforts to mitigate the adverse situation, we expect the fourth quarter operational results to be weaker than the current quarter,' it said.


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