Malaysia Airlines System (MAS) , the national carrier, aims to make as much as 700 million ringgit (US$194.44 million) in net profit this year, 14 times as high as its initial target, local press reported Tuesday.
Encouraged by the better-than-expected fourth quarter net profit in 2006, MAS Managing Director Idris Jala said the target is achievable if the airline continued to go all out to improve operations.
"Looking at what we have achieved under the turnaround plan, I agree that our earlier projection was too modest and was not reflective of the improvements that had been made so far," Idris was quoted as saying by the New Straits Times.
He also said the expected bulk of earnings would come mainly from its operations and not from exceptional gains such as asset sales.
For the fourth quarter that ended on Dec. 31, 2006, MAS recorded its second consecutive quarterly net profit of 122.04 million ringgit (US$33.9 million), Idris said Monday at a news briefing.
For the full year 2006, the national carrier posted a net loss of 133.74 million ringgit (US$37.15 million), almost 80 percent lower than its initial target of a 620-million-ringgit (US$172.22 million) net loss.
Idris said the stronger performance last year was driven by an increase in passenger revenue and significant cost reduction.
"For 2007, we will continue the momentum and intensify our business turnaround plan to generate profit," said Idris.
After appointed as MAS Managing On Dec. 1, 2005, Idris has taken a series of measures under the turnaround plan to help the troubled national carrier. MAS started to make money from operations in the second half of the year 2006.
(Xinhua News Agency February 27, 2007)