Centre for Asia Pacific Aviation notes that Malaysia Airlines` (MAS) restructuring efforts appear to be having early success, with net losses reduced by 36% and operating losses by 42% (or USD32 million) in the…
Centre for Asia Pacific Aviation notes that Malaysia Airlines` (MAS) restructuring efforts appear to be having early success, with net losses reduced by 36% and operating losses by 42% (or USD32 million) in the three months ended 30-Jun-06. The improved performance stems from higher revenues (+5.5%), improved yields and various cost-cutting measures.
But the outlook remains very challenging for MAS, with rival, AirAsia (which reported a big increase in Jun-06 quarter profits) yesterday signalling more aggressive price competition ahead, stated Peter Harbison, Executive Chariman of the Centre.
MAS also stated that the continued imposition of high fuel surcharges by airlines could dampen travel demand, while high fuel costs would continue to weigh on the bottom line. The carrier however stated it is on track to achieve internal targets under its turnaround plan.
Meanwhile, Philippine Airlines (PAL) reported a 17% reduction in Jun-06 quarter profits, as an 8% increase in operating costs (including a 15% increase in fuel costs) outstripped revenue growth of 6.0%.
PAL is expected to complete a backdoor listing on the Philippine Stock Exchange shortly to raise fresh funds to upgrade its fleet to tackle rising competition at home and abroad. The carrier has steadily lost market share to the aggressive LCC, Cebu Pacific, which recently transitioned to an all-A319/A320 fleet. (Cebu Pacific claims to have had a 41% domestic market share in Jun-06).
PAL also plans to expand its widebody fleet to target opportunities in the US and China, including Beijing. After reporting a 37% reduction in profit in the 12 months ended 31-Mar-06 to USD28.7 million, PAL is targeting a net profit of USD18 million in the current financial year, on flat revenue of USD1.2 billion.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales. She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
![[PR] PR_Ascott and Vimut Hospital_2024](https://www.traveldailynews.asia/wp-content/uploads/2024/04/PR-PR_Ascott-and-Vimut-Hospital_2024-400x265.jpg)
