MAG doubles net profit, but warns on outlook

Malaysia Aviation Group (MAG), the ‌operator of national carrier Malaysia Airlines, said it more than doubled its annual earnings in 2025, but warned market volatility caused by the conflict in the Middle East may weigh on its ​performance this year. MAG itself is owned by Malaysian sovereign wealth fund Khazanah Nasional. It reported ​a net profit after interest and tax of 137 million ringgit ($34 million) for 2025, ​up from 54 million ringgit a year earlier. Annual revenue rose 6% to 14.5 billion ringgit. MAG CEO Nasaruddin A. Bakar said geopolitical uncertainties continued to affect capacity, supply chains and cost structures, but travel ​demand remained strong, particularly from India and China, and on routes to Australia, New ​Zealand and Britain. Demand, however, could soften if the war prolongs, he said. “(Fuel prices) are so volatile ‌but ⁠we are ready, and we are prepared to ensure that the products and our assets are ready to fly,” he said. MAG said in a statement that it continues to invest in fleet renewal and operational resilience. The group’s Available Seat Kilometres (ASK) rose by 16%, while total passengers carried increased by 12% to 18.6 million with a load factor of 81%, reflecting strong demand across international and domestic segments. Despite the challenges faced in Q1 2025 due to earlier capacity and technical constraints, the Group steadily restored consumer confidence. Even with higher flight volumes, a continued focus on operational discipline translated into sustained improvements, with three consecutive quarters of strong performance, culminating in an 81% on-time performance by year-end. Operational Highlights Airline Business Segment Despite headwinds in the first half 2025 from residual effects of capacity cuts in 2024, Malaysia Airlines Berhad (MAB) recorded steady revenue growth with a 7% increase year-on-year, supported by a 17% increase in ASK as the airline continued to restore and expand its network. MAB resumed services to Paris and Brisbane while increasing frequencies to key markets across Australia, India, Maldives, and Bangladesh, reinforcing its commitment to strengthening Malaysia’s global connectivity. Firefly saw an improvement in NIAT year-on-year, amid residual headwinds from the Q4 2024 capacity reductions and competition. Through its jet operations, Firefly introduced new international services to Krabi, Siem Reap, and Cebu, alongside additional domestic routes, expanding its network footprint. AMAL by Malaysia Airlines recorded higher revenue year-on-year in FY2025, primarily driven by higher passenger numbers and improved yield. MAG also completed the divestment and ownership transfer of MASwings to the Sarawak Government in December 2025. Non-Airline Business Segment The Group’s cargo division, MAB Kargo, recorded stronger operating profit, supported by additional capacity as well as a more favourable fuel and currency environment. AeroDarat Services, the ground handling solution provider, sustained its profitability streak, delivering a double-digit increase in revenue driven by higher flight volumes handled for both the Group and foreign carriers. The maintenance, repair and overhaul (MRO) arm, MAB Engineering Services, delivered a strong turnaround, shifting from a loss in the previous year to a profit, supported by increased maintenance work for both internal and third-party customers. Meanwhile, MAB Academy, the Group’s premiere training and development arm, remained profitable amid continued investment capability building and increased operating expenses. In 2025, MAG and its subsidiaries continued to earn global recognition for their products and services, reflecting ongoing improvements in customer experience. Malaysia Airlines advanced to #27 in the 2025 Skytrax World Airline Rankings (from #39) and was recognised among the World’s Top 10 Cabin Crew. The Group’s loyalty programme, Enrich, was awarded Best Frequent Flyer Programme in Asia-Pacific by Business Traveller, underscoring its continued strength in member engagement and accessibility. MAG strengthened its operational and training capabilities with the launch of the MAB Academy Simulator Building, reinforcing its position as a premier aviation training provider in the region. In parallel, the Group made further progress in its fleet modernisation programme, securing 30 new narrowbody aircraft, including the Boeing 737-10 and additional Boeing 737-8, and exercising options for an additional 20 A330neo aircraft to support future growth and product competitiveness. For Editorial Inquiries Contact: Editor Matt Driskill at [email protected] For Advertising Inquiries Contact: Head of Sales Sally Passey at [email protected]