MAG To Announce Long-range Widebody Aircraft Replacement Plan Next Month - Capt Nasaruddin
KUALA LUMPUR, Nov 13 (Bernama) -- Malaysia Aviation Group (MAG) is expected to announce its long-range widebody aircraft replacement plans next month, said president and group chief executive officer Captain Nasaruddin A. Bakar.
He said the delays, partly caused by manufacturers’ supply chain constraints, could disrupt the group’s operational planning and capacity.
He said airlines typically sell tickets three to six months in advance based on expected availability of aircraft. Any delay in delivery could affect their ability to provide the planned services.
“When an aircraft delivery is delayed, we are not able to deliver the services as planned. So, we need to manage the disruption by transferring some of our passengers to other aircraft,” he told reporters on the sidelines of the Association of Asia Pacific Airlines (AAPA) 70th Assembly of Presidents (AP70) here today.
Nasaruddin said the impact on MAG’s earnings next year was expected to be minimal, unless the group was forced to undertake significant capacity reductions.
“However, if there is a substantial capacity reduction, it will impact our earnings next year,” he said, adding that MAG’s top-line revenue was recording an incremental year-on-year rise of 14 per cent between 2025 and 2026.
He said MAG’s ground handling business was recording a compound annual growth rate (CAGR) of about four per cent, supported by the arrival of more airlines in Malaysia.
“We are seeing a CAGR of about four per cent a year for our ground handling, depending on the airlines coming into Malaysia. We are seeing a lot of other customers that we are supporting today at Kuala Lumpur International Airport,” he said.
MAG had added four airline customers to its ground handling business this year.
Nasaruddin also said MAG had raised its average airfares by 20 to 30 per cent to partially offset the impact of jet fuel prices, which have surged about 90 per cent from pre-war levels.
“Having said that, the fuel price increase is very high; it is about 90 per cent more than the pre-war. So airlines are unable to recoup some of the charges from the fare that we charge to the passengers,” he said.
He said the pressure is also reflected across the Asia-Pacific aviation industry, with data released by the AAPA showing that airline profit margins had more than halved.
“Usually, our margins are around two to three per cent. In 2026, with the fuel price (impact), the margin is only slightly less than one per cent,” he said.
Fuel prices are expected to remain elevated in 2027, which suggests that airlines will continue to face cost pressures.
“Our operating costs have increased. Operating costs have increased about 90 per cent because of the fuel price. Depending on the fuel price next year, the forecast is still going to be very elevated; we believe that the price in 2026 will remain throughout 2027 as well,” he added.
-- BERNAMA