Malaysia Airlines earnings set to show financial burden of loss of MH370
Published on May 15, 2014 6:17 AM
SINGAPORE (REUTERS) - Malaysia Airlines will report first-quarter earnings later on Thursday that are set to provide confirmation of just how badly the already loss-making carrier's finances have been hit by the vanishing of flight MH370 on March 8.
Struggling for years to cope with high costs and nimbler regional and international rivals, Malaysia Airline Systems quarterly performance has been made so uncertain by reduced traffic and potential costs linked to the jet's unexplained disappearance that analysts say they simply can't issue January-March estimates.
The carrier known as MAS reported a net loss of RM343 million (S$133 million) for the last quarter of 2013, squeezed between AirAsia on short-haul routes, and Gulf carriers and AirAsia X in the medium and long-haul market. The first-quarter numbers are expected after the close of trading on the Malaysian stock exchange on Thursday.
Its worst quarter on record was in October-December 2011, when a series of one-off provisions related to jet deliveries and maintenance pushed it to a RM1.28 billion net loss.
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