National carrier Malaysia Airlines' Group recorded a net loss of RM527 million in the second quarter ended June 30, 2011, citing higher fuel costs as a major factor for the loss.
The loss however was lower than the net loss of RM535 million recorded in the same quarter of 2010, a company statement said here today.
The national carrier said fuel costs continued to have the greatest impact to the group's operations, increasing by 41 per cent from RM1.102 billion to RM1.55 billion in the second quarter of 2011, offsetting yield and revenue available seat kilometre (RASK).
In a separate filing to Bursa Malaysia here, Malaysia Airlines reported that its pre-tax loss was also reduced to RM509.411 million during the quarter reviewed compared with a pre-tax loss of RM532.591 million in the same quarter of 2010.
Its revenue for the second quarter rose to RM3.485 billion, eight per cent more than RM3.213 billion seen in 2010, while passenger revenue registered a nine per cent growth to RM2.086 billion, compared with RM1.912 billion previously.
Moving forward, the Board has identified immediate priorities to focus on in the short term.
"Firstly, it will focus on putting in place strong leadership to steer MAS and is proactively looking to fill the managing director/chief executive officer and key senior management positions," it said.
Working with the new Executive Committee (EXCO) formed two weeks ago, the national carrier said recovery initiatives would be implemented to turn the company's fortune around and to start rebuilding cash reserves.
Among immediate initiatives include better capacity management, the implementation of dynamic pricing to improve yields and revenues and a review of products and brand positioning.
A review of Firefly's business to focus on its turbo-prop operations out of Subang and to realign the Firefly jet business to focus on providing regional premium services are also included in the list.
On longer term, the EXCO would look into establishing a strategic plan to chart the airline's course back to sustainable profitability.
In response to the tough environment, the national carrier is moderating its short-term capacity growth.
MAS would also continue to enhance its yield performance through successful front-end business class initiatives, implementation of fuel surcharges and step up its yield/revenue management.