MAS reports Q1 loss after fuel costs surge

MAS reports Q1 loss after fuel costs surge

Malaysian Airline System Bhd. said on Monday it posted a first-
quarter financial loss of 280.7 million ringgit (US$73.9 million)
in the three months ending June 30 because of soaring fuel costs.

It was the first time the company reported a quarterly loss
since April-June 2003, when the region's travel industry was hit
by the outbreak of severe acute respiratory syndrome, or SARS.

Malaysian Airline said the loss occurred as fuel costs surged
58 percent compared to April-June last year, when the airline had
a net profit of 26.6 million ringgit.

The company operates national carrier Malaysia Airlines and
owns Southeast Asia's biggest passenger plane fleet of about 100
aircraft.

Malaysian Airline will find it difficult to be profitable for
this full financial year, chairman Munir Majid said in a briefing
where the results were announced.

In a statement to the stock exchange, the airline didn't
provide an earnings guidance, but said yields for its regional
and Indian markets will be under pressure following rapid
liberalization in air access and intensifying competition.

"High fuel prices, higher interest rates and the recent London
bombing may dampen economic growth and travel in developed
countries such as in Europe for the latter part of the calendar
year," the airline added.

However, it noted that demand for travel "has remained strong"
despite fuel surcharges.

The months of July-September are also the peak period for
Middle Eastern and European visitors, and passenger load is
expected to be high, the company said.

Malaysian Airline also announced that its managing director,
Ahmad Fuaad Dahlan, was retiring from the company effective on
Monday.

No other details were immediately available. -- AP