Will Malaysia Airlines make it?

My friend posted this interesting post about Malaysia Airlines. Here’s my take on the same issue.

When I look at companies, one of the things that I like to know is its operating results. In the airline industry, among other things, you’ll look at revenues, passenger/cargo load factors and yields. Other than revenue, profit or loss from operations figures would indicate how a company is doing financially in its core business activity.

Based on data from Malaysia Airlines website, here are the profit or loss from operations figures in (RM’000) from 2005 to Quarter 2, 2009 (figures in brackets indicate loss):

2005
Q1 91,091
Q2 (278,356)
Q3 (363,534)
Q4 (605,125)
Total (1,251,603)

2006
Q1 (309,533)
Q2 (160,677)
Q3 72,693
Q4 94,673
Total (133,737)

2007
Q1 146,843
Q2 54,379
Q3 376,389
Q4 260,764
Total 875,227

2008
Q1 132,898
Q2 62,029
Q3 44,277
Q4 66,252
Total 305,457

2009
Q1 (137,917)
Q2 (420,814)
Total (558,730) (Q1-Q2)

For 2009, here’s what the airline has to say:

• The Group's targets are: RM499 million loss - RM50 million net income (on target), RM51 million - RM500 million (exceeding) and RM501 million - RM 1 billion (outstanding).
• In July 2009, Aviation Week announced Malaysia Airlines as one of the top 3 airlines in the world (together with Singapore Airlines and Lufthansa) capable of weathering the current crisis.
  

I’m not making any analysis or posting an Excel graph here. I leave it to you to make your own conclusions. Only time will tell.

(249 words)