KUALA LUMPUR: Malaysia Aviation Group, the operator of national carrier Malaysia Airlines, reported higher profits in 2025 but warned on Thursday that market volatility caused by the conflict in the Middle East may weigh on its performance this year.
The month-long Iran war has shaken the global aviation industry, with a sharp surge in jet fuel prices driving airlines to hike fares and cut capacity.
MAG, owned by Malaysian sovereign wealth fund Khazanah Nasional, reported a net profit after interest and tax of 137 million ringgit ($34.08 million) for 2025, compared to 54 million ringgit a year earlier.
Its revenue in 2025 rose 6% to 14.5 billion ringgit.
MAG president and group chief executive officer Nasaruddin A. Bakar said geopolitical uncertainties continue to affect capacity, supply chains, and cost structures, but travel demand remained strong, particularly from India and China and on routes to Australia, New Zealand, and Britain.
"Fuel prices are so volatile but we're ready and will ensure our products and assets are ready to fly," he said.
Nasaruddin said MAG's airlines, which also include low-cost carrier Firefly, were actively reviewing and adjusting fares, adding that the company is estimated to see a financial impact of 50 million ringgit on every dollar increase in oil prices.
Malaysia Airlines has suspended all flights to Doha until April 15. - Reuters
