00:00You have previously mentioned about the financial year performance for
00:032026. It will be quite challenging. And given
00:07the sustained fuel cost pressure, and then you also mentioned about the
00:11forex mortality. So, is
00:15MAC still targeting for profitability this year? And another
00:19question will be, will there be any further network
00:23adjustment expected for the remainder of 2026? Right. Thank you.
00:27Thank you, Kishore, for the question. I think that's a very important question that we have to
00:31address. And as we know today, with the Middle East crisis, we're seeing the fuel
00:35price has increased more than 60%. For MAG, Kishore,
00:39our fuel cost is about 40% before the war. Because of
00:43the hike of the fuel price, it goes up to more than 50%.
00:47The first two months of the year, which is in January and February, we were
00:51profitable. And as mentioned by Brian Tadi, Kishore,
00:54he spoke about our operations. We're performing
00:57very well on our operations. Our on-time performance has
01:00been great at 91%, 92%
01:02for Firefly. And when the
01:04Middle East crisis happened in
01:0628th of February,
01:0810 days right after that, the price showed up
01:10to about $227
01:12per barrel. And today,
01:14yesterday, it stays at $160
01:16per barrel. It has
01:18given us a significant pressure on our
01:20financial performance, and that will
01:22be an impact to the group. Having said that, we're very cautious. We're doing surgical
01:27cut on our destination. Today, we have been cutting about 5% of our ASKs. Approximately
01:33about 8,000 of the total flights that we've cut from the 120,000 flights that we've got.
01:39And we are monitoring that daily to see whether what are the right markets, what are the right
01:44areas that we need to fly to contain our financial performance as much as we can
01:48in 2026. So, in short,
01:51it is a significant pressure
01:52to the financial performance in IMG.
01:54As you mentioned just now, the escalating
01:56West Asia conflict and
01:58giving the risk of higher
02:00oil price and also jet fuel
02:02from the
02:04West Asia conflict. So, what measure
02:06would you like to see from the government
02:08in the Budget 2027
02:10to help airlines manage
02:12rising fuel costs and maintaining
02:13the competitive airfares?
02:16Right. I think first and foremost,
02:18actually, thank you for the question. I think that's a valid question. And fuel costs
02:22just doesn't impact the airline alone. It impacts a lot of industries in the world. And for us in
02:27Malaysia Airlines, we believe we need to manage our network very carefully. The government has been
02:32very, very supportive with us, not just us, with all the airlines that we've got in the country. And we
02:38hope
02:38with the current support that we've got from the government, we are able to manage our network properly.
02:44So, one of the things that
02:46the government are also very concerned
02:48with what's happening out there in the Middle East,
02:50we are engaging
02:52the government. The government are engaging us
02:54very frequently to understand what our
02:57things that the government
02:58can assist. So, some of which what the
03:00government has assist us is basically
03:01to help us to ease some of
03:04the items. As an example,
03:06some fees at the airport and
03:08others that has helped cushion us
03:10with regards to our financial performance.
03:11I know that MAG has been using
03:14hedging to manage the fuel costs.
03:16So, are you looking to increase the
03:18hedging coverage going forward?
03:20Right. Thank you, Yao.
03:21I think that's a very important strategy and
03:23very important question.
03:25Today, as a group, we have
03:27hedged approximately about 36% to
03:2950%, depending on the time.
03:31We hedged our fuel every quarter.
03:33And moving forward for 2027,
03:35it really depends on the fuel out there in the market.
03:38We will continue hedging.
03:39And our current strategy today is
03:42every 12 months running.
03:44And with the hedging that we've got
03:45as a group, it has helped us a lot
03:47in terms of our financial performance as well.
03:49It's very important as a national carrier,
03:52we have to stand firm in what we plan to do.
03:54We know there's a lot of obstacles out there
03:56with regards to the fuel price in particular,
03:59especially at this point of time.
04:00It has reached to a peak of $230 per barrel.
04:04And that's a huge impact, not only to us,
04:07but the global industry as a whole.
04:09So your support is greatly appreciated.
04:13You know, as a national carrier,
04:14it's important for us to continue flying
04:16and to ensure that we fly to the right market
04:18that is profitable, not only just for us,
04:21but to support the growth of the country.
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