- Malaysia Airlines parent MAG reports net profit of $34 million in 2025
- Travel demand remains strong despite Middle East conflict, CEO says
- MAG targets fuel requirement hedging of 50% in Q2
KUALA LUMPUR, April 2 (Reuters) - Malaysia Aviation Group (MAG), the operator of national carrier Malaysia Airlines, said it more than doubled its annual earnings in 2025, but warned market volatility caused by the conflict in the Middle East may weigh on its performance this year.
The month-long Iran war has shaken the global aviation industry, with a sharp surge in jet fuel prices driving many airlines to hike fares and cut capacity.
MAG, owned by Malaysian sovereign wealth fund Khazanah Nasional [RIC:RIC:KHAZA.UL], reported on Thursday a net profit after interest and tax of 137 million ringgit ($34 million) for 2025, up from 54 million ringgit a year earlier. Annual revenue rose 6% to 14.5 billion ringgit.
MAG CEO Nasaruddin A. Bakar said geopolitical uncertainties continued to affect capacity, supply chains and cost structures, but travel demand remained strong, particularly from India and China, and on routes to Australia, New Zealand and Britain.
Demand, however, could soften if the war prolongs, he said.
"(Fuel prices) are so volatile but we are ready, and we are prepared to ensure that the products and our assets are ready to fly," he said.
Nasaruddin said MAG's airlines, which also include low-cost carrier Firefly, were actively reviewing and adjusting fares. He said the company estimated a 50 million ringgit financial impact for every $1 increase in oil prices.
MAG has hedged about 36% of its fuel requirements for the year and is targeting an increase to 50% in the second quarter, Nasaruddin said.
It has also secured enough jet fuel from existing domestic and international suppliers to cover its operations until the end of 2026, despite moves by some countries to limit re-fuelling amid a global shortage, Nasaruddin said.
MAG took delivery of 24 new aircraft in 2025 and expects a further 10 planes this year, Nasaruddin said, adding the group did not anticipate any delay in deliveries.
($1 = 4.02 ringgit)
Reporting by Danial Azhar; Writing by Rozanna Latiff; Editing by David Stanway and Jamie Freed
Source: Reuters