By DayakDaily Team
KUCHING, April 2: Malaysia Aviation Group (MAG) has assured that it can sustain its operations through to the end of the year, backed by sufficient fuel supplies.
In a TVS news, its president and Group chief executive officer Captain Nasaruddin A. Bakar said the assurance follows firm commitments secured from both domestic and international suppliers.
However, he acknowledged that the national airline is not immune to the ripple effects of the energy crisis triggered by the conflict in West Asia, particularly the sharp escalation in fuel costs.
“Jet fuel was previously priced at about US$100 per barrel, but has surged to nearly US$240 per barrel, an increase of over 140 per cent in just a month,” he said during a press conference held in conjunction with MAG’s 2025 Financial Performance announcement in Kuala Lumpur today.
Nasaruddin stressed that even a marginal increase in fuel prices carries significant financial implications, estimating that every US$1 rise translates to an additional RM50 million in costs for the group.
“At our scale of operations, any crisis in West Asia not only drives up fuel prices but also directly impacts the group and airline operations,” he said.
To cushion the impact, he added that MAG is actively managing cost risks through a disciplined fuel hedging strategy aimed at mitigating exposure to price volatility. — DayakDaily
