Malaysia Airlines says that it has swung back to profitability for the third quarter ending 30 September 2010, posting a net profit of RM233 million, on the back of a 15 per cent increase in revenue.

The national carrier reported a RM123 million operating profit, rebounding from an operating loss of RM77 million in 3Q09.

The airline said it recorded its highest seat factor in 15 years at 78.6 per cent in 3Q10 with 3.3 million passengers compared to 76.7 per cent in 3Q09.

It says balance sheet remains healthy with cash and negotiable deposits of some RM2.26 billion as at 30 September 2010.

Managing Director Tengku Azmil Zahruddin says that moving forward to 2011, the airline is positioning itself for profitable growth by taking delivery of new aircraft, identifying new growth areas and maximising revenues through aggressive sales and marketing.

Says it took delivery of two new B737-800 aircraft earlier this month and will have one more aircraft by end 2010. Funding for all incoming aircraft in 2011 has also been lined up.

'We are in a challenging and unpredictable industry and have to be mindful of the many things - economic fluctuations, rising fuel prices, even volcanic eruptions - that can quickly have an impact on our business,' Azmil said. - Reuters