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.