Malaysian Aviation Group profit more than doubles to RM137m as recovery strengthens amid cost discipline, travel demand

KUALA LUMPUR, Apr 2 — Malaysian Aviation Group (MAG) recorded a net profit of RM137 million for the financial year ended 2025, more than doubling the RM54 million achieved a year earlier, as the group continued its recovery while navigating persistent cost pressures and a volatile global environment.

President and group chief executive officer Captain Nasaruddin A. Bakar said the results mark the final year of the group’s long-term Business Plan 2.0.

“The year 2025 marks the final year of our long-term business plan 2.0, and as you can see from our financial results, we continue to deliver our fourth year of operational improvement,” Nasaruddin told a media briefing here today.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose to RM1.6 billion, up significantly from RM788 million in 2024, while total group revenue increased 6 per cent year-on-year to RM14.5 billion.

Expanding on this, Nasaruddin said the performance was driven by sustained travel demand and disciplined execution across the business.

“In terms of revenue, we are seeing an improvement of 6 per cent year on year,” he said, adding that earlier capacity cuts in late 2024 had affected yields in the first quarter of 2025.

“If you recall, in 2024 towards the fourth quarter, we had capacity cuts, and in the first quarter, some demand was displaced, which affected our yield. But for the full year, we are still ahead by 6 per cent,” he said.

He added that the group maintained strong cost discipline even as capacity expanded significantly.

“Although capacity is 60 per cent higher, we are actually only 7 per cent higher in cost.

“This shows that we continue to manage our costs in a very, very proactive manner.”

Operational performance also improved during the year, supported by corrective actions taken at the end of 2024, Nasaruddin said.

“In terms of our on-time performance, we saw improvement to 73 per cent from 51 per cent in the Malaysian Aviation Group profit more than doubles to RM137m as recovery strengthens amid cost discipline, travel demand previous year, reflecting that the short-term deliberate actions we took were the right course,” he said.

At the same time, he said MAG continued to expand its network and fleet, including additional narrow-body and wide-body aircraft to support future growth.

Nasaruddin said these developments reflect a business that is now on a more stable and sustainable footing.

Nasaruddin said MAG continued to expand its network and fleet, including additional narrow-body and wide-body aircraft to support future growth. — Picture by Raymond Manuel

However, he noted that the group continues to operate in a challenging global environment, shaped by the ongoing Russia–Ukraine war and tensions in the Middle East, which are affecting airspace, routing, fuel costs and network planning.

“For MAG, this presents real operational and financial challenges,” he said.

Despite this, he said the group remains focused on maintaining operational continuity and service reliability.

Beyond managing current conditions, Nasaruddin said the group is equally focused on preparing for future demand.

“Crises are temporary, but recovery can be swift and demand can return stronger than expected.

“The key question for us is not whether recovery will come, but whether we are ready when it does.”

He added that this means ensuring the right fundamentals are in place, including maintaining a healthy cash position, securing sufficient aircraft capacity, investing in customer experience, and ensuring workforce readiness.

“It also means we must remain agile and flexible in both strategy and execution, able to pivot quickly as conditions evolve,” he said.

Looking ahead, Nasaruddin said conditions in 2026 are expected to remain uncertain and unpredictable, reinforcing the need for discipline and resilience.

“Staying disciplined, agile and fit is essential, not just to withstand volatility, but to emerge stronger,” he said.

He added that the group remains on stable financial footing, supported by strong fundamentals, while reaffirming that safety remains its absolute priority.

“Throughout all of this, one principle remains unchanged. Safety will always be our absolute priority,” he said.

Nasaruddin also noted that 2025 marked a year of rebuilding customer trust, as operational performance improved and confidence gradually returned.

He pointed to the group’s improved standing in the Skytrax World Airline Awards, where Malaysia Airlines rose to 27th place from 89th in 2024, alongside continued recognition for its cabin crew among the world’s top 10.

“These achievements reflect the dedication and resilience of our people,” he said. “Proving that trust is not built through words, but through consistent delivery.”

With stronger foundations in place, MAG is now moving into its next phase under its long-term business plan, focusing on becoming a premium carrier, strengthening partnerships, driving operational excellence and building a more resilient business.

The next phase will be supported by investments in people, process excellence, digital innovation and sustainability, with the group shifting from stabilisation to carefully managed, sustainable growth.

Adding on to Nasaruddin’s remarks, group chief financial officer Boo Hui Yee said the group’s financial performance was achieved despite earlier operational challenges.

“Despite the capacity cuts in late 2024, which impacted yields in the first quarter, we still recorded 6 per cent revenue growth for the full year,” she said.

Malaysia Aviation Group Chief Financial Officer Boo Hui Yee speaks during the MAG 2025 Financial Performance announcement in Kuala Lumpur, April 2, 2026. — Picture by Raymond Manuel

She added that cost discipline remained a key driver of performance, even as operations scaled up.

“Although capacity increased significantly, cost growth was contained at 7 per cent.

“This reflects our continued focus on disciplined financial management while still investing in our products and services.”

However, Boo said the group’s cash position came under pressure due to higher maintenance spending, particularly engine shop visits.

“The lower cash balance was mainly due to engine shop visits, which had a significant impact on cash flow,” she said.

She added that the group’s liquidity remains supported by its restructuring commitments.

“From the RM3.6 billion committed under our restructuring programme, we still have RM1.77 billion undrawn as at December 31, 2025,” she said.

Boo said the group continues to manage its cash prudently and relies primarily on operating cash, while maintaining financial flexibility to support ongoing operations and future needs.