Malaysia Airlines said Wednesday it is on track to become profitable by the end of next year because its business turnaround plan has gained momentum.

Nevertheless, the airline reported a second straight quarterly loss for the three months through June. The quarterly net loss of RM175.2 million was largely due to foreign exchange losses and was lower than a loss of RM349 million in the same period last year.

Operating revenue rose 12 per cent to RM3.6 billion.

For the first half of 2013, the company's net loss dropped 12.7 per cent to RM454 million.

Chief executive Ahmad Jauhari Yahya said Wednesday that the company is on track to "build sustainable profit hopefully by the end of 2014."

The airline will announce plans later this year to purchase new planes as it will have to retire more than 40 old aircraft, he said.-- AP