KUALA LUMPUR, Dec. 8 (Xinhua) -- Malaysia Airlines said Friday that its third quarter passenger revenue increased 3.5 percent year-on-year amid stiff competition, rising fuel and adverse foreign exchange movement against budget.
In a statement, Malaysia Airlines said its Revenue per Available Seat Kilometer (RASK) improved by 2 percent year-on-year on the back of the average fare increase.
"The third quarter continued to be challenging with overcapacity in the markets we are in. Whilst our peers in the region seem to show trends of declining yields, putting pressure on overall RASK, I am happy to see Malaysia Airlines buckle this trend by showing improvements in both areas," said its newly appointed group chief executive officer Izham Ismail.
Going forward, he said, the management will be renewing focus on yield with clearer customer segmentation and improved revenue management practice. "Revenue is improving but we need to step this up to address rising costs from fuel and forex volatility," he added.
He also said that the group's network expansion is on track, with two new routes introduced, China's Chongqing and Indonesia's Surabaya.
The airline launched its new services to Chongqing on Oct. 30. Its services to China's Chengdu will follow suit by the first quarter of 2018.
"We are looking forward to the arrival of the six wide-body A330s to facilitate further growth plans. The six wide bodies will enable us to significantly improve the customer experience whilst also generating better revenue," he said.