MAG records higher profit of RM137 mln in 2025

KUALA LUMPUR (April 2): Malaysia Aviation Group’s (MAG) net profit jumped to RM137 million in the financial year ended Dec 31, 2025, more than double the RM54 million in 2024.

President and group chief executive officer (CEO) Captain Nasaruddin A Bakar said this marks MAG’s disciplined execution and continued focus on cost management and operational efficiency.

Group revenue grew to RM14.5 billion, representing a six per cent increase year-on-year (y-o-y), driven by sustained travel demand, network optimisation and disciplined commercial performance.

Despite the challenges faced in the first quarter (1Q25) due to earlier capacity and technical constraints, Nasaruddin said the group had steadily restored consumer confidence.

“Even with higher flight volume, a continued focus on operational discipline has translated into sustained improvement, with three consecutive quarters of strong performances, culminating in an 81 per cent on-time performance by year-end,” he told a press conference at the MAG Annual Performance Update on Thursday.

The group posted earnings before interest, taxes, depreciation and amortisation (EBITA) of RM1.6 billion, a significant improvement from RM788 million in 2024, supported by a stronger ringgit, favourable fuel prices, and capacity expansion across key markets, he said.

Nasaruddin said MAG continues to invest in fleet renewal and operational resilience.

“The group’s available seat kilometres (ASK), which measures an airline’s carrying capacity to generate revenue, rose by 16 per cent.
Total passengers carried increased by 12 per cent to 18.6 million with a load factor of 81 per cent, reflecting strong demand across international and domestic segments.

“Malaysia Airlines Bhd also resumed services to Paris and Brisbane while increasing frequencies to key markets across Australia, India, Maldives, and Bangladesh, reinforcing commitment to strengthening Malaysia’s global connectivity,” he added.

Residual headwinds from 4Q24 capacity reductions and competition remain at Firefly, but the airline saw y-o-y improvement.

“Through its jet operations, Firefly introduced new international services to Krabi, Siem Reap, and Cebu, alongside additional domestic routes, expanding its network footprint,” he said.

In the cargo division, MAB Kargo recorded a stronger operating profit, supported by additional capacity and a more favourable fuel and currency environment.

“AeroDarat Services, the ground handling solution provider, sustained its profitability streak, delivering a double-digit increase in revenue driven by higher flight volumes handled for both the group and foreign carriers.

“The maintenance, repair and overhaul arm, MAB Engineering Services, delivered a strong turnaround, shifting from a loss in the previous year to a profit, supported by increased maintenance work for both internal and third-party customers,” he said.

Nasaruddin said the group’s commitment to the future remains firm, with fleet modernisation continuing as a primary growth lever, and MAG on track with its long-haul fleet renewal.

“Simultaneously, we are integrating our value chain through the establishment of MAG Culinary Solutions.

“The development of a new purpose-built catering facility, with groundbreaking expected in 2Q26 and targeted for operational readiness in 2Q29, will drive long-term efficiency and service innovation,” he said.

Nevertheless, the group remains mindful of an increasingly fluid operating environment, he said.

“Market volatility and geopolitical uncertainties continue to affect capacity, supply chains, and cost structures, and may weigh on our 2026 financial performance despite our strong operational foundation.

“Navigating these conditions has required close coordination and steadfast support across the group and beyond.

“Our priority is to remain agile, driving financial resilience and operational sustainability amid the fluid geopolitical and macroeconomic landscape while keeping safety at the core of every decision,” he said. — Bernama