MAG’s (Malaysia Aviation Group) earnings before interest, taxes, depreciation and amortization turned positive in 2021 at MYR433 million, compared to a loss of MYR1.7 billion in 2020.
The aviation group attributed his performance to the sustainable strategies underlie in his enhance Long Term Business Plan 2.0. in a official statement released today
MAG added that it had managed to reduce its losses for the financial year ended December 31, 2021 by 60% year on year.
“This was achieved through strong cargo performance by MAB Kargo, generating revenue of MYR3 billion as a result of high global demand, allowing increased freighter and belly utilization via passenger-to -argo flights.
“In 2021, MAB’s passengers revenue yield increased by 57%, assisted by its Airline Rrevenue Maximization Solutions,” it says.
The ARMS provides a complete and comprehensive picture of an airline’s revenue and cost ecosystem, personalizing fares and offers to customers at a willing to pay rate using predictive forecasting features.
MAG said the restructuring exercise implemented in 2021 enable the group to holistically repair its balance sheet and address decades-long legacy issues, resulting in a reduction in a group’s liabilities of over MYR15 billion and eliminating MYR10 billion worth of debts.
“Lower operating costs from cost savings/avoidance initiatives across the group’s operations as well as lower leasing costs post restructuring further contributed to the improved performance in 2021,” it said.
It noted that passenger traffic and capacity were down by 56% year on year and 70% year on year respectively, due to continued domestic and global travel restrictions for the most part of 2021.
The group foresees strong uptake in passenger demand and sales contributing to its cash balance following the gradual reopening of international borders moving forward.
“Cargo operations will continue to lead the market as the demand for cargo movement in the Asia Pacific region is expected to grow by 5%.”
“MAB and its sister airlines will gradually raise the capacity for both domestic and international routes, expecting to achieve more than 70% of the pre pandemic capacity level,” it said.
“The current Russian Ukraine conflict has raised concerns and challenges in managing operational costs, which is directly impacted by the escalating fuel prices,” MAG is quoted as saying.
“Fuel prices at current levels off USD110 to 130 per barrel makes up to 40% to 45% of the group’s total operational costs- an increase of between 35 and 40% from a year ago.”
