Malaysia's national carrier said its net profit for 2008 could double its previous forecasts and hit 1.0 billion ringgit (431 million dollars) despite industry problems.
Malaysia Airlines (MAS) also said, in a statement released late Wednesday, that airline profits could also hit 1.5 billion ringgit (464 million dollars) annually in five years time, under a new business plan.
It declared net profits of 610 million ringgit for the first nine months last November, the best result of its 60-year history, after a net loss of 258 million ringgit for the same period in 2006.
Last year, airline officials also said profits for 2008 were targeted at about the 500 million ringgit mark.
"MAS believes ... it can achieve an annual profit of 1.5 billion ringgit by 2012 even after factoring in the challenges in the industry such as overcapacity, air traffic liberalization and rising fuel costs," it said.
The airline said net profits for 2008 could reach as high as 1 billion ringgit under its new business transformation plan.
The Business Transformation Plan 2 (BTP 2) is an updated version of the airline's 2006 reorganisation plan which was implemented after it posted a loss of over 1.3 billion ringgit in the first nine months of 2005.
In the last two years MAS has cut loss-making routes, reduced headcounts and sold non-core assets in a bid to raise new funds and return to profitability.
MAS Managing director Idris Jala said recently operating costs would be cut by up to one billion ringgit over the next few years.
It is expected to release its 2007 results next month.
Agence France-Presse - 1/31/2008
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