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Malaysia Airline (Mas) Copyright

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Malaysia Airline (Mas) Copyright
Malaysia Airlines First Quarter 2011 Financial Results
Tengku Dato’ Sri Azmil Zahruddin (MD/CEO)
Mohd Azha b Abd Jalil (CFO)
25 May 2011
© Copyright Malaysian Airline System Berhad 2011. All rights reserved

Contents





State of the Industry
Staying on course
First Quarter 2011 Financial Results
Positioning MAS towards becoming the No 1 Airline in
Asia
• Summary

© Copyright Malaysian Airline System Berhad 2011. All rights reserved.

2

Sharp rally in oil and fuel prices spurred by geopolitical risks
Average spread between crude oil and jet fuel widened from ~US$10 to >US$20/bbl
11 Apr 2011
SinJet US$142.85/bbl
WTI US$110.3/bbl

140

1Q10
130

average: US$85
1Q11 average: US$121

US$/bbl

120
110

42% increase in average jet fuel price

SinJet

100
90

WTI Crude

80
70

1Q10

2Q10

3Q10

4Q10

1Q11

60
*Prices from Jan’10, sourced from Bloomberg

Sin Jet

WTI Crude

© Copyright Malaysian Airline System Berhad 2011. All rights reserved.

3

Tough operating conditions further squeezing profit margins, some into negative territory

Jan-Mar operating profit down
41%

Jan-Mar loss of
US$202m

Source: Company reports, Airline Weekly

Operating profit down
17%

Jan-Mar loss of
US$128m

© Copyright Malaysian Airline System Berhad 2011. All rights reserved.

4

Contents





State of the Industry
Staying on course
First Quarter 2011 Financial Results
Positioning MAS towards becoming the No 1 Airline in
Asia
• Summary

© Copyright Malaysian Airline System Berhad 2011. All rights reserved.

5

Staying on course towards becoming
Number One Airline in Asia by 2015
Remaining resilient in challenging times
Strong revenue and traffic growth recorded in 1Q11
Unit cost (ex-fuel) continues its downtrend, costs relentlessly controlled throughout the company
Modest capacity growth in response to softening demand
Progressive fares and fuel

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