Weak ringgit delays Malaysia Airlines recovery — Khazanah MD

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KUALA LUMPUR: The weak ringgit is delaying Malaysia Airlines’ recovery, said Khazanah Nasional Bhd Managing Director (MD), Tan Sri Azman Mokhtar.

He said when the restructuring plan for the national airline was made, the ringgit was expected to trade between RM3.90 and 3.95 against the US dollar.

“In 2017, the ringgit hovered around RM4.40 against the US dollar. That translated directly to about half a billion to the bottom line of Malaysia Airlines in a negative way,” he told reporters at the company’s annual review here yesterday.

The airline’s recovery will be delayed between six and 12 months due to the currency impact, he said.

Nevertheless, Azman said, the recovery plan was still operating within the expected time frame, and the airline was expected to break even by year-end or at the latest, by the first half of next year.

“When we issued it (recovery plan) three years ago, we targeted the airline to be listed or about to list by 2019, and profitability is one of the criteria to be listed,” he said. — Bernama