Malaysia Aviation Group to maintain disciplined growth amid fuel cost surge
Malaysia Aviation Group says it will continue to grow its network despite high fuel prices now accounting for over half its expenses, though it has trimmed about 5% of capacity.
Malaysia Aviation Group (MAG) plans to keep "growing with discipline" as it absorbs a sharp rise in fuel costs, group chief Nasaruddin Bakar said in Kuala Lumpur on 4 September. Fuel now accounts for more than 50% of total expenses, up from around 40% previously, and is putting significant pressure on financial performance.
MAG has responded with what Bakar called "surgical cuts" to its network, trimming systemwide capacity by about 5% since the conflict in the Middle East began. The group monitors market conditions daily to decide where to fly.
Bakar said the airline group's plans remain focused on the long term. MAG has added 25 new routes over the past three years and announced additional route launches and capacity increases through the end of the year, including resumption of flights by Malaysia Airlines.
MAG, which includes Malaysia Airlines and regional unit Firefly, reported a net profit of MYR137 million ($33.9 million) for 2025, more than double the prior year. The group was profitable in January and February before the fuel price spike, but Bakar previously warned that remaining profitable this year would be challenging.
Sources
- flightglobal.comMalaysia Aviation Group to ‘grow with discipline’ as fuel challenges loom large