Malaysia Aviation Group will continue hedging fuel into 2027 as elevated jet fuel prices weigh on its finances, while the parent of Malaysia Airlines has already trimmed network capacity by about 5%, or roughly 8,000 flights, to protect performance. The group outlined the measures in Kuala Lumpur on Friday alongside its FY26 outlook, citing pressure from fuel that makes up around 40% of total costs.
President and group chief executive Captain Nasaruddin A. Bakar described the route reduction as a targeted adjustment rather than a broad retreat, with the carrier reducing frequencies on selected destinations instead of abandoning them. MAG will monitor demand and market conditions daily and adjust routes as needed, reflecting a cautious stance as it balances revenue opportunities against rising operating costs.
The group has already taken delivery of 26 aircraft, including Boeing 737-8s and Airbus A330neos, as part of its fleet modernisation programme. It also put a fresh spotlight on fuel volatility, estimating that every US$1 increase in fuel prices adds about RM50 million to annual costs while jet fuel remains near US$160 per barrel.