Malaysia Airlines cutting capacity 7% in first quarter

Malaysia Airlines is scaling down Q1 capacity 7.1% amid the coronavirus outbreak, as it halves Chinese operations and makes a double-digit cut to North Asian services. Izham Ismail – CE of the airline’s parent Malaysia Aviation Group – describes the 7.1% reduction as “huge”. He notes the cancellation of “more than 1,600 flights” to date and says he expects the number to rise if the outbreak continues to affect demand for air travel. “Malaysia Aviation Group is not spared from all of this,” says Izham. “Drastic action from all of us needs to be taken. For a start, the senior management team will take a 10% salary cut, including the allowances.” Before facing the challenges posed by the coronavirus crisis, the group had managed to improve its performance in 2019. Revenue climbed 7%, and net income rose despite higher fuel costs, foreign-exchange movements, and the adoption of a new accounting standard on leases.<br/>