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