No talks with govt on taking over AirAsia routes, says Malaysia Airlines
Malaysia Airlines chief says there have been no official requests or discussions on the matter.
KUALA LUMPUR: Malaysia Airlines Bhd has raised its average fares by 20-30 per cent to offset the effects of soaring jet fuel prices, which have surged by roughly 90 per cent since the Middle East conflict. Malaysia Aviation Group (MAG) president and CEO Captain Nasaruddin A. Bakar clarified that the fare hikes are insufficient to fully offset the additional fuel expenses.
He stated that the increase can be absorbed via a fuel surcharge or a fare hike. Nasaruddin emphasized that the fuel price surge is significant, being about 90 per cent higher than pre-war levels. Consequently, airlines are struggling to recover a portion of the increased charges from passenger fares. AAPA data revealed that profit margins for Asia Pacific airlines have plummeted by over half, dropping to less than one per cent in 2026 from the typical two to three per cent range.
Looking ahead to 2027, Nasaruddin anticipates that jet fuel prices will stay high, prompting Malaysia Airlines to continuously adjust fares based on demand and supply via dynamic pricing. The airline intends to manage its capacity judiciously to ensure profitable routes. As the national carrier, Malaysia Airlines must sustain domestic and international connectivity, including routes requiring higher fuel costs.
Despite the increased expenses, the MAG's Long-Term Business Plan 3.0 (LTBP3.0), in effect until 2030, remains on track. MAG aims for RM24.6 billion in revenue by 2030, up from RM13.8 billion in 2024, and to secure a spot among the world's top 10 airlines in the Skytrax rankings. The group plans to announce its strategy for replacing long-range wide-body aircraft within a month.
MAG's airline business accounts for roughly 80 per cent of its total revenue, while non-airline activities, such as MASkargo, ground handling, and aviation training, generate about 20 per cent of the group's income. The ground-handling business, MAG's fastest-growing segment, is expanding at a compound annual growth rate of around four per cent, with more airlines using its services at KLIA.
In the fiscal year concluding December 31, 2025, MAG generated RM14.5 billion in revenue, marking a six per cent increase from RM13.8 billion in 2024. The company's net profit more than doubled to RM137 million from RM54 million in the corresponding period.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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