MAG President and Group Chief Executive Officer, Captain Nasaruddin A. Bakar, said fuel typically makes up around 30% of Malaysia Airlines’ operating costs. However, following geopolitical tensions since late February, fuel costs have increased to around 50%.
He explained that the sharp rise in fuel prices has significantly impacted airline operations, making cost management a key priority. To cushion the impact of fluctuating fuel prices, Malaysia Airlines has implemented a fuel hedging strategy that currently mitigates around 36% of the increase in fuel costs.
Nasaruddin also said the airline aligns its ticket pricing with prevailing market rates alongside other regional and international carriers.
Airfares increased by 20 to 30%
In response to higher operating costs, Malaysia Airlines has adjusted its fares by approximately 20 to 30 %, in line with pricing trends across the aviation industry. According to Nasaruddin, the fare adjustments are comparable to those introduced by other airlines both within the region and globally.
Despite higher fares, passenger demand has remained strong, particularly for long-haul routes to Europe, especially London. The airline has increased flight frequencies on selected routes to meet demand, with average load factors currently standing at around 84%. Some sectors have even recorded load factors as high as 95%.
95 new aircraft to improve fuel efficiency
Looking ahead, MAG is focusing on improving operational efficiency through fleet modernisation and tighter cost control.
The group has ordered 95 new aircraft, with 27 already delivered. According to Nasaruddin, the new fleet is expected to improve fuel efficiency by between 12 and 15%, depending on the aircraft model, supporting the airline’s long-term cost optimisation plans.The updates were shared during a corporate visit by Malaysia Aviation Group to Media Prima Berhad, led by Media Prima Group Managing Director Datuk Rafiq Razali. The visit aimed to strengthen collaboration between MAG and Media Prima as part of the airline’s ongoing efforts to foster closer ties with its media partners.
Follow Wah Piang for more.
