Malaysia Aviation Group, the parent of Malaysia Airlines, remained profitable in the first two months of 2026 but is now contending with a sharp surge in jet-fuel costs that could add as much as RM7.5 billion to its bill. The Kuala Lumpur-based group is also pushing ahead with growth plans even as higher fuel prices and thinner airline margins place renewed pressure on its recovery.
Group chief executive Nasaruddin A Bakar linked the cost escalation to the rise in jet fuel after conflict in the Middle East, with prices moving from below US$100 a barrel in the first two months of the year to about US$227 after late February. He estimated that every US$1 increase in oil prices affects the group by about RM50 million. MAG had already recorded profit early in the year, but the fuel shock has since outweighed revenue growth and raised expectations of a more difficult 2026.
The group has continued to adjust operations and manage exposure through hedging, fare changes and route trimming. At the same time, it remains expansionary, targeting RM25 billion in revenue and a fleet of 117 aircraft by 2035. Even so, management has warned that fuel now accounts for a much larger share of costs, leaving profitability vulnerable if prices stay elevated.