MAS books 39% jump in profit

MAS books 39% jump in profit

KUALA LUMPUR (AFP): Malaysia Airlines System Bhd. (MAS) said
yesterday the group pre-tax profit rose 39.1 percent year-on-year
to a record 349. 4 million ringgit (US$139.76 millions) in the
year to March.

The profit was achieved on a 13.8-percent increase in group
revenue to 6.6 billion ringgit, chairman Tajudin Ramli said,
attributing the performance to cost-cutting measures and more
effective utilization of resources.

"The numbers are good. I do not want to sound arrogant, it
speaks for itself," Tajudin told a press conference. But he
declined to say whether the airline was capable of repeating the
feat in the current year.

The chairman said the outlook for the airline industry in
1997-98 was "good, with increasing air travel and demand
particularly in the Asia Pacific region."

He said MAS intended to try and improve first and business
class passenger loads and concentrate on routes which draw
upmarket travelers.

Tajudin said the profit came despite an increase in the number
of MAS employees from 19,000 to 22,000 last year and a bigger-
than-budgeted increase in fuel costs.

"This profit was attained despite the challenging market
conditions of yield pressure, stiff competition and higher fuel
cost," he said.

Tajudin, who owns a 32-percent stake in MAS, said effective
cost containment measures resulted in group expenditure
increasing at a slower rate of 13.4 percent.

The group's after-tax profit was 334 million ringgit, an
increase of 100.9 million ringgit or 43.3 percent. Group earnings
per share based on an enlarged paid-up capital rose by 10.5 sen
to 43.8 sen.