KUALA LUMPUR (April 2): Malaysia Aviation Group Bhd (MAG) doubled its net profit in 2025, thanks to prudent cost management amid capacity expansion that led to modest revenue growth during the period.
Net profit for the financial year ended Dec 31, 2025 (FY2025) more than doubled to RM137 million from RM54 million in FY2024, its third consecutive year of net profit.
Revenue rose 6% to RM14.55 billion from RM13.68 billion in the previous year.
Passenger revenue was also up 6% to RM11.60 billion, while cargo revenue climbed 7% to RM1.62 billion.
"2025 marked the fourth consecutive year of operating profit for the parent company of national carrier Malaysia Airlines Bhd," president and group chief executive officer Captain Nasaruddin A Bakar told reporters at its annual results presentation.
In the year, operating cost rose 7%, slower than its capacity increase where average seat kilometre (ASK) rose 16%, said group chief financial officer Boo Hui Yee.
ASK during the period reached RM53.22 billion while operating costs stood at RM14.72 billion.
“Even though we invest a lot in our services and products, our cost is actually managed very, very consciously to ensure the airline continues to sustain its profitability,” she said.
Boo also noted that the cash balance almost halved to RM1.53 billion from RM3 billion in FY2024, mainly due to higher aircraft maintenance shop visits.
On its outlook, Nasaruddin highlighted that the aviation industry, especially the Asia-Pacific market where it operates, remains the fastest growing in 2026, although the razor-thin net profit margin of 1.4% faced by the airline carriers in the region remains a challenge.
"In this part of the world, we've seen that Asia-Pacific has got one of the highest growth here on traffic, both on passenger traffic and also on cargo traffic.
"Having said that, even though there is a big growth in terms of the industry in this part of the world, the margin remains very, very minimal," said Nasaruddin.