Malaysian Airlines losses rise after disasters

Thursday 28 August 2014 12.35
The airline also warned of poor second half earnings as bookings tumbled
The airline also warned of poor second half earnings as bookings tumbled

Malaysia Airlines reported another financial loss and warned of poor second-half earnings, as passenger bookings tumbled.

The outcome was in response to the loss of two aircraft in separate disasters this year.

In a statement to the stock exchange, Malaysian Airline System Bhd said its second-quarter net loss rose to 307.04 million Malaysian ringgit - roughly $97.5 million - from a net loss of 175.9 million ringgit in the same period a year earlier.

The result was an improvement from the net loss of 443 million ringgit it reported in the first quarter.

The April-June earnings are the first to fully reflect the impact on sales of the unexplained disappearance of Flight MH370 in March.

Malaysia Airlines is set to be taken private by its majority shareholder, state fund Khazanah Nasional Bhd, in a move to revamp its business, devastated this year by MH370's loss and the shooting down of Flight MH17 over Ukraine in July.

Details of the restructuring are expected on Friday.