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KUALA LUMPUR (Sept 5): ÿ�մ��� Aviation Group Bhd (MAG), the parent company of national carrier ÿ�մ��� Airlines Bhd, reported a 39% year-on-year increase in net income after tax (NIAT) for the first half of 2025, driven by a stronger ringgit, favourable fuel prices and improved operational efficiency from its newer fleet.

"Capacity, measured in available seat kilometres (ASK), grew 7% year-on-year, supported by fleet and network expansion. These results are encouraging markers that our investments in our products, people, and processes are delivering tangible outcomes, positioning us for continued growth," said MAG group managing director Datuk Captain Izham Ismail at a media briefing to announce the airline group's network expansion here on Friday.

MAG posted a net profit of RM54 million for FY2024, down sharply from RM766.19 million a year earlier. The decline was largely due to a significant 18% reduction in capacity in the fourth quarter of 2024, which affected 6,388 flights — including 4,784 domestic and 1,604 international services — and nearly one million customers.

However, the airline group managed to avoid slipping into the red, thanks to a RM426 million reversal of asset impairments that were initially recognised during the Covid-19 pandemic in 2020.

"Over the past year, MAG has been firmly focused on building resilience and strengthening our operations. Last September, we made the deliberate decision to reduce capacity — a difficult but necessary step to protect reliability and ensure that every commitment we make to customers is one we can deliver with consistency," said Izham.

He added that the group had made “meaningful progress”, citing improvements in operational performance. MAG’s on-time performance rose from 71.9% at the start of 2025 to 87.3% in July, while its customer satisfaction index improved from 80% in 2024 to 83% year to date in 2025.

‘Not declaring victory yet’

Despite the gains, Izham cautioned against complacency.

"Let me be clear: we are not declaring victory. Like the rest of the industry, we continue to face ongoing challenges. Global supply chain constraints, rising operational costs and shifts in market dynamics can affect our trajectory at any time as we have seen before. That's why our focus remains on building the right foundation, across our airlines and our businesses, to ensure resilience and consistency for the long term."

Izham also highlighted the recent consolidation of the group's low-cost subsidiary FlyFirefly Sdn Bhd’s jet operations from the Sultan Abdul Aziz Shah Airport (Subang Airport) in Subang, Selangor to the Kuala Lumpur International Airport (KLIA) as a strategic move to boost regional connectivity and group synergy.

"Operating jets from KLIA allows Firefly to capture high-demand regional markets while tapping into the broader international flows at our main hub and complementing ÿ�մ��� Airlines’ global network. At the same time, Subang remains the dedicated hub for Firefly’s turboprop services, connecting communities across Peninsular ÿ�մ���.

This dual-hub strategy, he said, enhances the group’s network efficiency and strengthens KLIA’s position as a key aviation hub for the region.

FlyFirefly ceased all jet operations at the Subang Airport on Aug 19, becoming the second airline after low-cost carrier AirAsia to do so.

To support its growth trajectory, MAG is moving ahead with its fleet renewal strategy.

ÿ�մ��� Airlines currently has a fleet of 86 aircraft, comprising 54 narrowbody and 32 widebody aircraft. The airline has taken delivery of six Airbus A330neo and 14 Boeing 737-8 aircraft this year, which are central to its efforts to improve fuel efficiency, reduce environmental impact and deliver a more consistent passenger experience.

"By 2035, our ambition is for ÿ�մ��� Airlines to operate a modern mainline fleet of 116 aircraft, with an average age of just seven years (from 10 years today). This renewed fleet, alongside Firefly’s expanding services, will support a group network spanning 106 destinations across Asia, the Middle East, Europe and beyond," said Izham.

He added that this scale would position ÿ�մ��� Airlines as one of the region’s leading premium carriers, with the flexibility to serve both high-demand regional routes and major long-haul corridors.

"With a balanced mix of narrowbody and widebody aircraft, ÿ�մ��� Airlines will have the flexibility to capture growth in both regional and long-haul markets, ensuring we remain resilient in shifting market conditions. Together, these investments are a cornerstone of our ambition to position ÿ�մ��� Airlines among the world’s top 10 global carriers by 2030," he added.

Focused on the future

“While pressures and uncertainties remain in the aviation industry, the foundations we’ve laid, the network we’re expanding and the products we’re enhancing ensure MAG stays resilient, relevant and ready to deliver long-term value — to our customers, our people and the nation,” he concluded.