Malaysia Airlines reported its first annual profit in over a decade as strong demand and elevated airfares propel a rebound for the troubled airline. 

The carrier’s parent, Malaysia Aviation Group (MAG), posted a RM766 million (S$217.5 million) profit, from a RM344 million loss a year earlier, it said in a statement on March 21. 

That was helped by a strong performance for the airline unit, which disclosed an operating profit of RM1.1 billion. The unit reported its first profit since 2010, according to the statement.

The bottom line was helped by factors including robust passenger traffic from the premium segment and increased international networks, MAG managing director Izham Ismail said at a briefing. That outweighed higher operational and labour costs, a weaker ringgit and supply-chain challenges, he said.

The airline carried 14.5 million passengers in 2023, up 46 per cent from a year earlier. It reached 86 per cent of pre-pandemic capacity by December, and expects a full recovery in the second quarter of 2024.

“While 2023 marked a remarkable resurgence, 2024 is poised to be the year where we solidify our credibility,” Mr Izham said. The group will add 12 new aircraft to its fleet in 2024, and wants to operate 100 by 2033.

Malaysia Airlines has been mired in turmoil for the past decade after enduring double tragedies in 2014, with the disappearance of MH370 and the downing of MH17 over Ukraine.

The incidents deepened its financial losses, drove a share price slump and eventually saw the company delisted from Malaysia’s stock exchange.

BLOOMBERG