Malaysia Airlines parent’s earnings rise in 2025, but Middle East conflict clouds outlook
MAG warned that geopolitical uncertainties continue to affect capacity, supply chains and cost structures
Published Thu, Apr 2, 2026 · 02:53 PM
[KUALA LUMPUR] 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, reported on Thursday (Apr 2) a net profit after interest and tax of RM137 million (S$43.6 million) for 2025, up from RM54 million a year earlier. Annual revenue rose 6 per cent to RM14.5 billion.
MAG chief executive officer 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.
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Nasaruddin said that MAG’s airlines, which also include low-cost carrier Firefly, were actively reviewing and adjusting fares. He said the company estimated a RM50 million financial impact for every US$1 increase in oil prices.
MAG has hedged about 36 per cent of its fuel requirements for the year and is targeting an increase to 50 per cent in the second quarter, he 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, he 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. REUTERS
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