Malaysian Airline System (MAS) reported a fourth straight quarter of losses and warned of tough operating conditions in 2014 as fuel and financing costs rise and stiff competition curbs fare increases. The losses come after growing competition in Southeast Asia from budget airlines such as AirAsia and Dubai's Emirates Airline forced the Malaysian flag carrier to slash prices to keep its planes full.
"Going into 2014, Malaysia Airlines expects the business environment to remain challenging with high fuel prices, volatile foreign exchange and intense competition," the company said in a statement to the stock exchange on February 18.
"The significant increase in capacity, especially the continued expansion of Middle Eastern and European carriers into our region, is adding further competition to the already crowded marketplace."
Kuala Lumpur-listed MAS posted a net loss of 343.4 million ringgit ($104.23 million) in October to December, swinging from a 51.4 million ringgit profit in the same period a year earlier as higher finance costs and depreciation charges weighed.
Its full-year loss was 1.17 billion ringgit, nearly three times the 433 million ringgit loss notched up for 2012. Finance costs nearly doubled while a weaker ringgit currency against the dollar and rising capacity utilisation inflated fuel costs.
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