KUALA LUMPUR (April 2): Malaysia Aviation Group Bhd (MAG), the parent company of national carrier Malaysia Airlines Bhd, will maintain its expansion plan and take delivery of 10 new aircraft this year.
The airline group has moved “from stabilisation to scaling,” as its home turf, the Asia-Pacific region, remains the fastest-growing market in terms of both passenger and cargo traffic, said president and group chief executive officer Captain Nasaruddin A. Bakar during a briefing on its performance for the financial year ended Dec 31, 2025 (FY2025) here on Thursday.
Malaysia Airlines also teased the launch of three new routes at the upcoming Malaysian Association of Tour and Travel Agents (MATTA) Fair on Friday, building on efforts throughout 2025 that included new routes, increased flight frequencies and an improved in-flight experience. The airline added 24 aircraft to its fleet last year.
The growth plan comes at a time when the industry is grappling with soaring jet fuel costs and flight cancellations due to the Iran war. Airlines are also still reeling from global shortages of aircraft parts, which have affected the maintenance of older aircraft and the production of new planes.
While MAG recorded strong operating cash flow, the group will tap into post-restructuring funds previously provided by controlling shareholder Khazanah Nasional Bhd to finance its capital expenditure, said group chief financial officer Boo Hui Yee. At the end of 2025, MAG still had RM1.77 billion remaining from the RM3.6 billion capital allocated by Khazanah as part of the 2021 restructuring.
MAG’s cash balance declined to RM1.53 billion in 2025 from RM3 billion in 2024, mainly due to growth investments and maintenance-related shop visits. Last year, it drew down RM500 million to support investments and partially cover maintenance costs totalling RM2.5 billion.
Excluding these one-off items, the business has been operationally cash flow positive since the 2021 restructuring. Its cash from operations totalled RM1.9 billion in 2025, up from RM401 million in 2024.