Malaysia Airlines To Deliver Profitable Growth In 2018, Plans New Airline

KUALA LUMPUR, Nov 30 (Bernama) -- Malaysia Airlines Bhd (MAB) expects to deliver profitable growth in 2018 by controlling costs, competitive airfares, and maximising load factors despite a challenging environment, said its Group Chief Executive Officer Peter Bellew. "We have delivered a stronger second half of 2016 but a weak ringgit, Brexit uncertainty and overcapacity in the Malaysian market will be the dominant features of 2017," he said. Malaysia Airlines had hedged significant fuel requirements but it would continue to be exposed to the US dollar volatility in the first half of 2017, he said in a statement announcing the group's performance for the third quarter ended Sept 30, 2016. For next year, the airline expects to carry over 15 million customers. Bellew said the group is currently working towards finalising plans for the formation of a new airline, utilising the six A380 aircraft to service the Haj and Umrah market. "Malaysia Airlines is already transporting Muslim pilgrims on charter flights to Saudi Arabia very successfully and is in a good position to cater for increased passenger demand on this route," he said. Meanwhile, Bellew said the airline showed steady progress in the quarter under review, with cost control continuing to be the central focus. He said passenger load factor in Q3 improved to 79 per cent from 74 per cent in the same quarter last year, and the targeted marketing also led to a 15 per cent market share increase on its London route to 59 per cent in September, up from 45 per cent in May. "The quarter saw a marked improvement in revenue and passenger loads, and our customer service index also continued to recover as product improvements were steadily introduced in the quarter," he said. In addition, he said the airline also expanded its network in Q3 as it had launched nine new routes to China for 2017. "The new lie flat seats and upgraded food in business class on our widebody aircraft has seen a 20 per cent increase in forward bookings for the next six months," he added. -- BERNAMA