Malaysia Airlines has reported a 9.5% fall in Q1 profit to MYR120.5 million ($37.1 million) from MYR133.1 million earned in the year-ago period. It said "higher operating expenses mainly from the increase in fuel costs" were responsible for the dip.
Though it experienced a 5.6% year-over-year increase in operating revenue, to MYR3.66 billion, during the quarter, it could not control a 6.5% rise in expenses to MYR3.62 billion.
Operating profit slipped 9.5% to MYR132.9 million from MYR146.8 million in the first three months of 2007.
MAS said its concerns for the second quarter, amongst other factors, would also concern "managing the high fuel prices.''
It also said that increasing fuel surcharges and fares "will alter travelling patterns and frequency" for both business and long-haul leisure customers.
Revenues are under tremendous ''downward pressure," it said, because of growing competition and a "huge" increase in capacity.
MAS has issued a minimum MYR400-MYR550 million net profit guidance for the full year, assuming a jet fuel price of $100 per barrel.