Malaysia Airlines registers 2% improvement in RASK in Q3

PETALING JAYA: Malaysia Airlines’ recorded a 2% year-on-year improvement in revenue average seat per kilometre (RASK) in the third quarter (3Q17) despite stiff competition, rising fuel and adverse foreign exchange movement.
“The third quarter continued to be challenging with overcapacity in the markets we are in. Whilst our peers in the region seem to show trends of declining yields, putting pressure on overall RASK, I am happy to see Malaysia Airlines buck this trend by showing improvements in both areas,” group CEO Captain Izham Ismail said in a statement today.
The improved RASK came on the back of higher passenger revenue of 3.5% during the quarter. Load factor remained stable at 77.5% in 3Q17 compared with 77.8% in 2Q17.
However, load factors for both international and domestic sectors were lower compared with 3Q16 at 78.4% and 72.2% respectively in 3Q17 against 79.1% and 80.2% respectively a year ago.
In 3Q17, the airline carried a total of 3.4 million passengers, slightly less than the 3.6 million passengers carried in 2Q17. Passenger yield was higher at 22.6 sen compared with 21.4 sen in 2Q17.
The airline said passenger yield will continue to be a focus area moving forward and that forward bookings in the next quarter remain healthy with better passenger revenue.
“We have seen some progress but there is still a long way to go. Moving forward we will be renewing focus on yield with clearer customer segmentation and improved revenue management practise. Revenue is improving but we need to step this up to address rising costs from fuel and forex volatility,” said Izham.
On-time performance fell to 70% in 3Q17 from 73% in 2Q17 due to technical issues, severe weather, air traffic control delays and operational constraints. Izham said these issues are being addressed with particular focus on operational efficiencies in engineering and ground handling.
“I am also personally paying close attention to customer experience. Processes need to be simplified for better operational efficiency. The foundations have been put in place and we are confident to see improvements soon,” he added.