• Malaysia Airlines Berhad (“MAB”) reports a strong result for Q4 2016. Malaysia Aviation Group Berhad Chief Executive Officer Peter Bellew said that bookings accelerated in the last quarter thanks to a focus on the premium business traveller and all-inclusive economy fares.

He added: ‘The last quarter saw a good performance in a challenging environment. Our staff have worked hard to improve customer service which is reflected in increased bookings. Our focus is to be a five star premium Asian airline, offering the best of “Malaysian Hospitality” to 15 million customers a year, travelling to 54 destinations in 21 countries. At the core of our brand is the “Golden Rule - treat customers as you would wish to be treated yourself”. The Golden Rule will be supported by simpler customer service policies and a large investment in training in 2017.’

Passenger load factors improved in Q4 2016 to 81% year on year from 70% Q4 2015, achieving 90% in the month of December. Malaysia Airlines has maintained our fare discipline despite competitor fares dropping. We remain focused on cost control and have identified a further RM400 million of cost reductions in 2017 to offset US Dollar strength. The airline finished 49% ahead of our budgeted loss for the year 2016.

Malaysia Airlines will continue to offer great value on all-inclusive business and economy fares while most carriers around the world continue to add extra charges and unbundle their fares. We see enormous growth potential from inbound tourism from China to Malaysia.