Malaysian Airlines Bhd (MAB) is on track to break even in 2019 despite the rise in fuel prices.
MAB group chief executive officer Captain Izham Ismail said the “fuel price is impacting the company quite badly but the national airline has taken measures” to keep it under control.
“We are cognisant of the fuel price and we are doing our best to manage the (fuel) cost.
“It is a challenging outlook for 2018 and we are doing our best to make MAB break even next year,” he told the media after meeting the Council of Eminent Persons here today.
Earlier this year, Khazanah Nasional Bhd managing director Tan Sri Azman Mokhtar said the airline was initially expected to break even in 2017 or 2018, but it has pushed back its target to 2019 due to external factors which included currency fluctuations and rising fuel prices.
Izham who was doorstopped after the high level meeting said that the discussion was insightful and they advised the company to continue with its progress.
Fuel price forms a huge chunk in the operating cost of an airline and the sharp increase in fuel cost will take a toll on its profits.
On Friday, Brent oil price was trading at just under US$77 a barrel, off its recent high of US$80.50.
For the first quarter ended March 2018, MAB reported a year-on-year yield improvement of 6.6 per cent and this was despite stiff competition in both international and domestic sectors.
Its revenue per available seat kilometer had shown a healthy growth of 3.5 per cent year on year with overall total revenue also growing by two per cent.