KUALA LUMPUR: Malaysia Airlines recorded stronger improvement in the fourth quarter ended Dec 31, 2016 with higher passenger load factor, higher traffic while customer satisfaction reached an all-time record in October.
Malaysia Aviation Group Bhd CEO Peter Bellew said on Wednesday the airline also remained focused on cost control and had identified a further RM400mill of cost reductions in 2017 to offset US Dollar strength.
“The airline finished 49% ahead of our budgeted loss for the year 2016,” he said.
In a statement issued by Malaysia Airlines, Bellew said bookings accelerated in the last quarter thanks to a focus on the premium business traveler and all-inclusive economy fares.
“The last quarter saw a good performance in a challenging environment. Our staff has worked hard to improve customer service which is reflected in increased bookings.
He said passenger load factors improved in Q4 2016 to 81% on-year from 70% Q4 2015, achieving 90% in the month of December.
“We see enormous growth potential from inbound tourism from China to Malaysia,” he said.
Bellew said the airline and the group finished the year ahead of budget and the Group’s turnaround initiatives were delivering positive results.
“Overall, the airline and the Group recorded a smaller loss than initially projected under the business plan for the fiscal year 2016.
MAS’ Boeing 737 fleet are now operating with a 35 minutes turnaround time (TAT) with effect from Oct 27, 2016 for the new winter season.
It said this would enable the group to reduce its aircraft requirement by up to four 737s in 2017.
In 2016, the airline had also undertaken 17 fuel initiatives to monitor and track, resulting in overall savings of 22.15 mil kg from a target of 13.3 mil kg per annum.
MAS also said customer satisfaction and experience were key for the future growth of the airline and it was rated a five-star airline by Skytrax.
The airline had continued investing in aircraft, product, service and technology as a core principle of its transformation program.
