In 2024, Malaysia Aviation Group (MAG) recorded a Net Profit After Interest and Tax of RM54 million. The group marked its third straight year of positive operating profit at RM113 million (approximately USD$24.2 million.)
Despite challenges, MAG achieved a strong Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of RM788 million.
This success came even as the Group faced operational hurdles, including an 18% capacity reduction in the fourth quarter due to proactive network adjustments.
MAG 2024 Performance
MAG maintained a robust cash balance of RM3.0 billion by December 31, 2024, without any capital injections from its primary shareholder, Khazanah Nasional Berhad, since October 2021.
The capacity cuts, prompted by supply chain issues and delays in new aircraft deliveries, impacted full-year revenue. This reached RM13,679 million—a slight 1% drop from the previous year despite a 6% increase in Available Seat Kilometre (ASK).
However, the Group saw strong demand in its premium passenger and cargo segments, with improved load factors. MAG also expanded its international network by adding new routes and forming strategic partnerships.
A key factor in MAG’s positive financial performance was a RM426 million reversal of impairments on assets, including Rights of Use Assets, Aircraft, Property, Plant, Equipment, and Intangible Assets.
These impairments, initially recorded during the COVID-19 pandemic in 2020, were reversed due to better capacity, revenue, seat factors, and yields in 2023 and 2024.
Airline Business Highlights
Malaysia Airlines Berhad (MAB), MAG’s flagship carrier, reported an operating profit of RM139 million in 2024, down 87% from RM1.09 billion in 2023.
The decline was due to lower yields and the impact of capacity cuts in Q4. However, MAB increased its capacity by 7%, carried 17% more passengers, and improved its load factor to 81% from 77% in 2023.
The airline added three new destinations—Male (Maldives), Da Nang (Vietnam), and Chiang Mai (Thailand)—and resumed flights to Kolkata, India.
On-time performance (OTP) saw a modest 1% improvement, limited by aircraft availability.
Firefly, another MAG subsidiary, faced challenges in 2024. Its losses grew due to the launch of jet operations at Subang Airport.
While its load factor rose by 10 percentage points, yields dropped by 19% because of the new jet operations.
Global Recognition and Customer Experience
MAG and its subsidiaries earned significant accolades in 2024. Malaysia Airlines received the APEX Four-Star Major Airline status and ranked among the Top 10 for World’s Best Cabin Crew by Skytrax.
It also climbed to #39 from #47 in the World’s Best Airline rankings. The airline’s in-flight dining, including its Best of Asia menu, won awards, showcasing its focus on enhancing the onboard experience.
Additionally, the Enrich loyalty program continued to excel in member engagement and customer loyalty.
Strategic Vision for Growth
Datuk Captain Izham Ismail, Group Managing Director of MAG, emphasized the Group’s resilience and commitment to growth. “In 2024, we maintained profitability despite challenges, positioning MAG for a sustainable future,” he said.
“Our Destination 2030 vision focuses on commercial sustainability and nation-building, ensuring we contribute to Malaysia’s economic development while strengthening our competitiveness.”
A cornerstone of this strategy is fleet modernization. By 2030, MAG aims to operate a 55-aircraft narrowbody fleet of Boeing 737-8 and 737-10 models, boosting efficiency and flexibility.
The Group is also integrating A330neo aircraft into its long-haul network, with two already serving routes to Melbourne, Bali, and Auckland.
Eight more A330neos are expected in 2025. Forward bookings, up 9% year-on-year, support MAG’s plans to expand in ASEAN, Australia, New Zealand, and South Asia. The return of flights to Paris on March 22, 2025, marks MAG’s second European destination.
Supporting Broader Objectives
MAG’s non-airline businesses are also advancing. MAB Academy’s new simulator building, set for completion in Q2 2025, will enhance regional aviation training.
MAB Engineering Services is strengthening its talent pipeline to support fleet expansion and maintenance, repair, and overhaul (MRO) demand.
Hangar 4 in Subang, slated to open in Q1 2026, will further boost maintenance capacity. Meanwhile, MAG’s catering arm, MCAT, has transitioned to a new facility, supporting the Group’s in-flight catering ambitions.
Conclusion
MAG’s investments foster employment, improve connectivity, and drive economic activity in Malaysia.
By focusing on sustainability and exceptional stakeholder value, MAG is building a strong foundation for long-term success while contributing to the nation’s development.
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