KUALA LUMPUR: Malaysia Airlines passenger bookings continued to accelerate in the first quarter this year, up 12.9 per cent, year-on-year to 3.57 million passengers, despite the challenging environment due to higher fuel prices and adverse foreign exchange.
In a statement, the national carrier said domestic load factor improved to 70.8 per cent for the quarter under review, from 64.7 per cent recorded in the same period last year, while international load factor rose to 81.1 per cent from 69.6 per cent.
Group Chief Executive Officer Peter Bellew said yields were lower due to intense competition and a price war, however, the quarter saw further rapid improvement in international business due to an equalisation of certain charges at Kuala Lumpur International Airport.
"Malaysia Airlines continues to see strong bookings with a 45 per cent improvement in forward bookings for the next six months (from June to November 2017) compared with the same period in 2016," he said.
On fleet expansion, the group was exploring various options for widebodies for possible delivery in 2018 and 2019 considering the rapid growth in its international segment.
The airlines' current fleet comprised 54 Boeing 737-800, 15 Airbus A330-300 and six Airbus A380.
Meanwhile, Malaysia Airlines continued to invest in a talent pipeline by putting in place a structured performance management system for all employees group-wide and as at the first quarter this year, a total of 70 per cent of executives and above have completed the workshop.
As part of leadership development and succession planning, the group introduced its own Senior Leadership Development Programme (SLDP) where identified talent for leadership positions were sent to various prestigious education institutions as part of their learning and development.
On prospects, Malaysia Airlines maintained a cautious outlook for the 2017 financial year as the weak ringgit and higher fuel prices had created a challenging cost environment.
"Advance bookings are far stronger in 2017 than 2016, but the airline is seeing yield pressure across all routes as low fares are available from many legacy carriers and as the traditional low-cost carriers.
"We will continue to be prudent in controlling capacity and allocate group's aircraft where we see the best potential returns. The airline is still on track to be profitable in 2018," it added.
Source: Bernama | 26 May 2017
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