Fuel costs forces MAS into the red

Fuel costs forces MAS into the red

KUALA LUMPUR: Flag carrier Malaysia Airlines (MAS) on Tuesday blamed high fuel prices for a 280.66 million ringgit (US$74 million) net loss in the three months to June, from a profit of 26.58 million ringgit a year ago.

The airline said that in the first quarter of its financial year, revenue rose 16.6 percent to 2.84 billion ringgit.

"Going forward... the high fuel prices, higher interest rates and the recent London bombings may dampen the economic growth and travel in developed countries such as in Europe for the later part of the calendar year," it said.

Malaysia Airlines also said that the recurrence of the haze, which blanketed parts of Malaysia earlier this month, may also impact on travel here.

The carrier also said in a statement to the stock exchange that its managing director Ahmad Fuaad Dahalan, 55, has resigned effective on Monday. No reasons were given. -- AFP