PETALING JAYA: Malaysia Aviation Group (MAG) has managed to restructure, repair its balance sheet and address decades-long legacy issues last year, resulting in the reduction of the group’s liabilities by over RM15bil and its debt cut by RM10bil.

       The higher demand for its cargo services has also led the airline group to report positive earnings before interest, taxes, depreciation, and amortisation (ebitda) for the financial year (FY) ended Dec 31, 2021.

       The ebitda achieved was RM433mil for FY21 compared with a loss of RM1.761bil in 2020, reducing its losses for FY21 by 60%.“Our cost saving initiatives across the group and lower leasing cost following our successful restructuring had contributed to the improved performance in 2021,’’ MAG, the parent company of Malaysia Airlines Bhd (MAB), said in a statement yesterday.

       The global demand for cargo was high amid the pandemic.

       “MAG generated a revenue of RM3bil for its cargo operations, which grew by 52% year-on-year (y-o-y), with load factor increasing by an average of 7% and yield by an average of 12%,”it said.

       MAG passenger traffic and capacity was down by 56% and 70% y-o-y respectively due to the domestic and global travel restrictions for the most of 2021.

       A a result, the group experienced lower passenger traffic and reduced capacity for MAB by 62% and 71% respectively in 2021. It recorded a 57% higher yield in passenger revenue.

       On its outlook, it said with the gradual reopening of international borders, it expected a strong uptake in passenger demand and sales.

       The cargo operations are expected to continue to lead the market as the demand for cargo movement in the Asia-Pacific region is expected to grow by 5%.

       MAB and its sister airlines will gradually add capacity for both domestic and international routes.

       It is expecting to achieve more than 70% capacity to pre-pandemic level.

       Firefly has reinstated its jet operations from its new hub, the Penang International Airport, since April 11.

       However, the Russian conflict has raised challenges in managing operational cost, which is directly impacted by the escalating fuel price.

       Fuel price, at current levels of US$110 (RM471) per barrel to US$130 (RM557) per barrel, makes up 40% to 45% of the group’s total operational cost, an increase of about 35% to 40% from a year ago.