Malaysia Aviation Group Navigates Rising Costs, Eyes COMAC Jets

Malaysia Aviation Group (MAG) remains financially stable despite rising costs from global trade tensions and has no plans to seek additional capital injections, according to group managing director Izham Ismail. Speaking in Kuala Lumpur, Ismail confirmed MAG’s commitment to financial independence, noting the group ended 2024 with a cash balance of MYR3 billion (USD680 million).

MAG, the parent company of Malaysia Airlines, Firefly, Amal by Malaysia Airlines, and MASwings, reported a net profit of MYR54 million (USD12.2 million) for 2024, a 90% drop from the previous year. Ismail attributed the decline to capacity reductions, supply chain disruptions, extended maintenance times, and aircraft delivery delays.

With trade disputes impacting costs, particularly for aircraft components subject to tariffs, Ismail acknowledged that cost pressures would persist, affecting the group’s operating margins.

Malaysia Airlines has 98 aircraft on order, including 44 from Boeing, which sources components globally before assembling aircraft in the U.S. The airline aims to operate 55 Boeing 737 MAX jets by the early 2030s. Additionally, 20 Airbus A330-900Ns are on order, with eight expected by the end of 2025 and two already in service.

MAG is also exploring future fleet options with Chinese aircraft manufacturer COMAC. “We remain open to all manufacturers, provided they align with our long-term ambitions,” Ismail said.

Separately, MAG confirmed plans to transfer MASwings to the Sarawak state government by January 2026. The subsidiary, which operates public service routes in Sarawak and Sabah, has received MYR10 million (USD2.27 million) in annual subsidies.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com