KUALA LUMPUR :-- Malaysia Airlines (MAS) sunk deeper into the red in the second quarter ended June 30, 2014 (Q2, 2014) with net losses of RM307.04mil compared with net loss of RM175.98mil a year ago as it was impacted by the tragedies involving flights MH370 and MH17.
The disappearance of Malaysia Airlines flight MH370 in March 2014 continued to impact the airline’s Q2, 2014 financial results with MAS reporting a net loss of RM307mil due to lower yield and seat factor.
Adding to the earlier loss of RM443mil in Q1, 2014 the national carrier’s first half 2014 results stood at a loss of RM750mil, 65% more than the previous corresponding period in 2013,” it said on Thursday.
Group chief executive officer, Ahmad JauhariYahya said: “We expected the impact of MH370 on the performance in Q2, 2014. Given that, our team put in much hard work and effort to regain market confidence and rebuild sales.
“We operate in a harsh business environment of stiff competition from regional and global carriers and high operational costs. Coupled with the impact of the two tragedies which have damaged our brand, the need to restructure the company was accelerated.
“The full financial impact of the double tragedies of MH370 and MH17 is expected to hit MAS in the second half of the year”, said Ahmad Jauhari.
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