Malaysia Aviation Group records operating profit for the fourth year in a row | News
Malaysia Aviation Group (“MAG” or “the Group”) maintained its positive momentum in the financial year ended Dec 31, 2025, with a net profit after interest and tax (NIAT) of RM137 million, more than double the RM54 million achieved in 2024. This marks the Group’s fourth consecutive year of operating profit, reflecting its disciplined execution and continued focus on cost management and operational efficiency.
The Group achieved earnings before interest, taxes, depreciation and amortization (EBITDA) of RM1.6 billion, marking a significant improvement from RM788 million in 2024. This was supported by a stronger ringgit, favorable fuel prices and capacity expansion in key markets. The Group’s total revenue grew to RM14.5 billion, up 6% year-on-year, driven by sustained travel demand, network optimization and disciplined commercial performance.
MAG continues to invest in fleet renewal and operational resilience. The Group’s available seat kilometers (ASK) increased by 16%, while the total number of passengers carried increased by 12% to 18.6 million with a load factor of 81%, reflecting strong demand in the international and domestic segments. Despite the challenges faced in the first quarter of 2025 due to previous capacity and technical constraints, the Group has steadily restored consumer confidence. Even with higher flight volumes, a continued focus on operational discipline translated into sustained improvements, with three consecutive quarters of strong performance, culminating in an on-time performance of 81% by year-end.
Operational Highlights: Airline and non-airline business segments
Business segment airlines
Despite headwinds in the first half of 2025 due to the residual effects of capacity cuts in 2024, Malaysia Airlines Berhad (MAB) delivered steady revenue growth with an increase of 7% year-on-year, supported by a 17% increase in ASK as the airline continued to repair and expand its network.
MAB resumed flights to Paris and Brisbane, while increasing frequencies to key markets in Australia, India, the Maldives and Bangladesh, reinforcing its commitment to strengthening Malaysia’s global connectivity.
Firefly saw NIAT improve year-over-year amid remaining headwinds from Q4 2024 capacity reductions and competition.
Through its jet operations, Firefly introduced new international services to Krabi, Siem Reap and Cebu, in addition to additional domestic routes, expanding its network footprint.
Malaysia Airlines AMAL posted higher year-on-year revenue in FY2025, mainly driven by higher passenger numbers and improved returns.
MAG also completed the divestment and transfer of ownership of MASwings to the Sarawak government in December 2025.
Non-airline business segment
The Group’s freight division, MAB Kargo, posted stronger operating results, supported by additional capacity and a more favorable fuel and currency environment.
AeroDarat Services, the ground handling solutions provider, continued its profitability, delivering double-digit revenue growth thanks to higher flight volumes for both the Group and foreign airlines.
Its maintenance, repair and overhaul (MRO) division, MAB Engineering Services, achieved a strong turnaround, with turnover moving from a loss in the previous year to a profit, supported by increased maintenance work for both internal and external customers.
Meanwhile, MAB Academy, the Group’s main training and development arm, remained profitable despite the continued build-up of investment capabilities and higher operating costs.
In 2025, MAG and its subsidiaries continued to earn global recognition for their products and services, due to continuous improvements in the customer experience. Malaysia Airlines moved up to number 27 in the 2025 Skytrax World Airline Rankings (from number 39) and was recognized as one of the top 10 cabin crew in the world. The Group’s loyalty program, Enrich, was named Best Frequent Flyer Program in Asia Pacific by Business Traveler, underscoring the continued strength of member engagement and accessibility.
MAG strengthened its operational and training capabilities with the launch of the MAB Academy Simulator Building, cementing its position as a leading provider of aviation training in the region. At the same time, the Group made further progress in its fleet modernization programme, securing 30 new narrowbody aircraft, including the Boeing 737-10 and additional Boeing 737-8, and exercising options for a further 20 A330neo aircraft to support future growth and product competitiveness.
Remarks by President and Group Chief Executive Officer of MAG, Captain Nasaruddin A. Bakar
2025 was a year of consolidation and disciplined execution for MAG. We focused on restoring operational reliability and rebuilding customer trust, while deepening strategic partnerships to expand our network reach and strengthen connectivity in key markets. Together, these efforts have strengthened customer confidence and enabled us to scale more effectively, resulting in stable trust and continued recognition of our products and services, strengthening the Group’s credibility and resilience.
The year also marked the successful completion of MAG’s Long Term Business Plan 2.0 (LTBP2.0). Building on the foundation of the successful financial restructuring carried out in 2020-2021, this phase has been critical in stabilizing the business and strengthening our core capabilities. We are now moving to LTBP3.0, our roadmap to 2030, from a stronger foundation and clearer strategic priorities.
Our commitment to the future remains as strong as ever. Fleet modernization remains an important lever for growth; we are on track with the renewal of our long-distance fleet. At the same time, we are integrating our value chain by establishing MAG Culinary Solutions (MAGCS). The development of a new purpose-built catering facility, with groundbreaking expected in the second quarter of 2026 and operational in the second quarter of 2029, will drive long-term efficiency and service innovation.
However, we remain aware of an increasingly fluid work environment. Market volatility and geopolitical uncertainties continue to impact capacity, supply chains and cost structures and could weigh on our financial performance in 2026 despite our strong operating base. Navigating these conditions required close coordination and steadfast support within the Group and beyond.
At the same time, resilience in such an environment is only possible thanks to the collective strength of our people and partners. The progress we have made reflects the dedication of our employees and the continued support of the government and our industry partners throughout 2025. Their commitment has enabled us to build and maintain momentum in these circumstances.
Our priority is to remain agile and drive financial resilience and operational sustainability in the changing geopolitical and macroeconomic landscape, while keeping security at the heart of every decision. As we move forward, we will focus on disciplined growth and sustainable value creation, strengthening Malaysia’s connectivity as a global aviation hub and supporting the country’s economic development.
