12/02/12, 14:21:11 EST

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Malaysian Airline Sees Profit Rise

chron.com

Flagship carrier operator Malaysian Airline System Bhd. said Monday its third-quarter net profit rose 52 percent from the previous year, boosted by buoyant passenger demand.

Net profit for the quarter ended Sept. 30 was 364 million ringgit ($108 million), up from 240 million ringgit in same period last year, the company said in a statement.

Revenue for the period reached 4.23 billion ringgit ($1.3 billion), a 15 percent increase over revenue of 3.67 billion ringgit a year earlier, it added.

Passenger revenue in the quarter was up 12 percent on year at 2.46 billion ringgit ($734 million), and the average fare per passenger mile rose 7 percent.

Company managing director Idris Jala noted the fourth quarter is "seasonally the strongest" in comments on the prospects for the rest of the year. The company was recording strong bookings, he said.

But he also warned that the airline's performance "will be damped by the impact of higher oil prices, like all other airlines."

Malaysian Airline is undergoing a three-year restructuring following record losses in 2005 and 2006 due to high oil prices and a global industry downturn.

The carrier recently said it expects to unveil a new business plan in January to help it sustain growth and further cut costs by up to 1 billion ringgit ($286 million) _ about 10 percent of its operating cost _ over the next five years.

 Printable Version  | published Nov 26, 2007