KUALA LUMPUR: Malaysia Airlines Bhd has increased its average fares by 20-30 per cent to cushion the impact of higher jet fuel prices, which have risen by about 90 per cent compared with levels before the Middle East conflict.
Malaysia Aviation Group (MAG) president and group chief executive officer Captain Nasaruddin A. Bakar said the fare increases are not enough to fully recover the additional fuel costs.
“We have increased the average fare by about 20-30 per cent. This can be replicated either through fuel surcharge or increase of fares but that’s to cushion the impact for the fuel price.”
“Having said that, the fuel price increase is very high. It’s about 90 per cent more than pre-war.
“So, the airlines are not able to recoup some of the charges from the fare that we charge to the passengers,” he told reporters on the sidelines of the Association of Asia Pacific Airlines’ (AAPA) 70th Assembly of Presidents here today.
Nasaruddin said AAPA data showed that profit margins among Asia Pacific airlines had fallen by more than half and airline profit margins which were typically around two to three per cent had dropped to less than one per cent in 2026 due to higher fuel prices.
On the 2027 outlook, he said jet fuel prices are expected to remain elevated, while Malaysia Airlines will continue to adjust its fares based on demand and supply through dynamic pricing.
He said the airline would continue to manage its capacity carefully to ensure that routes deliver positive financial performance.
However, he said as the national carrier, Malaysia Airlines also has to maintain domestic and international connectivity, including routes where it has to absorb higher fuel costs.
Nasaruddin said the increase in jet fuel prices had placed significant pressure on MAG’s financial performance.
“It has given us significant pressure on our financial performance,” he said when asked about the group’s financial position.
Despite the higher costs, Nasaruddin said MAG’s Long-Term Business Plan 3.0 (LTBP3.0), which runs until 2030, remained on track.
He said the group’s growth plans, including aircraft already ordered and those expected to be announced, are progressing as planned.
Under LTBP3.0, MAG is targeting RM24.6 billion in revenue by 2030, compared with RM13.8 billion in 2024.
The group also aims to position Malaysia Airlines among the world’s top 10 airlines in the Skytrax rankings.
Nasaruddin said MAG will announce its plans for the replacement of its long-range wide-body aircraft within a month.
“We’ll be making the announcement for our long-range wide-body replacement,” he said.
On MAG’s business operations, Nasaruddin said its airline business contributed about 80 per cent of total revenue, while non-airline businesses, including MASkargo, ground handling and aviation training, accounted for about 20 per cent of group income.
He said the group’s ground-handling business is growing at a compound annual growth rate of about four per cent with more airlines using its services at Kuala Lumpur International Airport (KLIA).
MAG had secured four additional airline customers for its ground-handling services this year, he said.
For the financial year ended December 31, 2025, MAG recorded revenue of RM14.5 billion, up six per cent from RM13.8 billion in 2024.
The group’s net profit more than doubled to RM137 million from RM54 million previously.