Malaysian Airline shares sink to record low on rights plan
issue, said the analyst.
MAS also said it will reduce the par value of its shares to 90 sen from 1 ringgit in order to build a credit reserve of 8 billion ringgit. The company raised 2.7 billion ringgit in a rights issue in 2010.
The company saw its performance improve on lower fuel costs after it cut unprofitable routes, asserting that cost management remained a priority going forward.
Revenue initiatives have started to gain traction in the market, and combined with the improved utilisation of the fleet and our manpower, we are beginning to see the results of our hard work, Jauhari said in a statement.
MAS shares are down about 22.5 percent since the beginning of the year. In February, the company reported its worst-ever loss of 2.5 billion ringgit for 2011, surprising analysts who had expected its restructuring to limit losses.
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