KUALA LUMPUR: Malaysian Airline System Bhd (MAS) posted net losses of RM343.44mil in the fourth quarter ended Dec 31, 2013 compared with net profit of RM51.37mil a year ago as it expects the business environment to remain challenging.
It said on Tuesday it was impacted by higher operating expenditure and finance costs. Revenue rose 0.8% to RM3.896bil from RM3.866bil a year ago. Loss per share was 2.06 sen compared with earnings per share of 0.72 sen.
At the EBITDA (earnings before interest, tax, depreciation and amortisation) level, it was negative at RM56.3mil.
MAS explained that while capacity increased by 19% and seat factor by 4.3 percentage points to 81.6%, the intensified competition resulted in lower yield by 16%. Its group operating expenditure increased by 7% in line with capacity increase.
"Going into 2014, MAS expects the business environment to remain challenging with high fuel prices, volatile foreign exchange and intense competition impacting yield from both existing as well as new entrants into the market.
"The significant increase in capacity, especially the continued expansion of Middle Eastern and European carriers into our region, is adding further competition to the already crowded marketplace," it said.
Providing details of the financial performance, MAS said there was a depreciation of RM172.7mil in Q4, 2013 (2012: RM126.8mil), unrealised foreign exchange loss of RM18.7mil (2012: RM69.5mil gain), finance costs of RM105.1mil (2012: RM78.0mil) and fair value change of derivative of RM5.7mil gain (2012: RM14.6mil gain).
For FY13, its net loss widened to RM1.173bil from RM432.58mil. Its revenue rose 9.9% to RM15.12bil from RM13.75bil.
This was despite the group's EBITDA improved to RM254.2mil from RM187.3mil previously at the back of higher operating revenue of RM14.548bil, a 10% improvement compared to FY12.
Capacity increased by 17% and there was a seat factor improvement of 6.3 percentage points to 81%, but passenger yield continued to be under pressure due to intense competition from new entrants, domestically and regionally.
"Group's operating expenditure for the financial year was higher by 10%. Fuel cost increased by 10% was in line with capacity increase and continued weakening of Ringgit against US Dollar.
"Non fuel costs also increased by 9% mainly from increase in capacity related costs, selling and marketing, maintenance and inventories obsolescence provision for phased out aircraft," it said.
MAS said after accounting for depreciation of RM816.7mil (2012: RM548.3mil), unrealised foreign exchange loss of RM194.4mil (2012: RM190.0mil gain), finance costs of RM436.6mil (2012: RM235.3mil) and fair value change of derivative of RM20.4mil gain (2012: RM17.2mil loss), the group registered an increase in loss after tax to RM1,173.7 million in FY13 from RM432.6mil in previous year.
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