PETALING JAYA, A strategic pivot to premium services, modern fleet renewal, and stronger international partnerships have propelled Malaysia Airlines’ comeback, marking a significant turnaround for the national carrier.
According to Captain Izham Ismail, group managing director of parent company Malaysia Aviation Group (MAG), the airline’s revival began in 2019 when it reevaluated its market strategy.
“For years, we were locked in fare wars with low-cost carriers, which made no sense given our higher operating costs,” he told FMT. “It became clear we were targeting the wrong segment.”
MAG subsequently repositioned Malaysia Airlines as a premium full-service carrier. Moving away from point-to-point budget routes, the airline adopted a hub-and-spoke model centered on Kuala Lumpur International Airport (KLIA), facilitating long-haul connectivity between destinations like Europe and Australia.
By late 2019, signs of recovery began to show. The airline returned to operating profit in 2022, and by 2023, MAG recorded a net profit of RM766 million — a sharp reversal after years of losses.
Tackling an aging fleet
One of MAG’s biggest challenges was its aging fleet, with aircraft averaging 14 years — above the global norm of 11 years. The situation led to capacity cuts of 18% in late 2024, with 6,300 flights canceled and nearly a million passengers affected.
To address this, MAG launched a major fleet renewal programme. Deliveries of new-generation aircraft, including Airbus A330neos and Boeing 737-8s, are well underway. Four of the 20 A330neos and 12 of the first 25 Boeing 737-8s have been delivered. Additional orders, including Boeing 737-10s, are expected through 2028, with a second phase of deliveries from 2029.
Expanding reach through alliances
As a mid-sized airline, Malaysia Airlines leaned on strategic partnerships to extend its network. Through code-sharing agreements with over 20 global carriers, the airline now offers access to nearly 900 destinations worldwide.
“A moderate-sized airline with a limited fleet needs strong partners to compete globally,” said Izham.
MAG also leveraged Malaysia’s rich cultural appeal — such as hospitality and cuisine — to differentiate itself in the premium segment. One initiative, the Bonus Side Trip (BST), allows transiting international passengers at KLIA to visit a second Malaysian city at no extra cost.
“BST highlights our commitment to positioning Malaysia as a leading Asian destination while supporting local economies and businesses,” he said.
Recognition and momentum
Malaysia Airlines’ transformation has gained global recognition. It was named the world’s fastest-growing airline brand in Brand Finance’s 2025 Airlines 50 report, with brand value surging 209% to US$607 million.
At the 2025 Skytrax World Airline Awards, it ranked in the top 10 in several categories, including:
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6th for World’s Best Airport Services
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8th for World’s Best Cabin Crew
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7th for Best Airline Staff in Asia
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9th for Best Airlines in Asia
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10th for Best Economy Class Seats
“This isn’t just a recovery story — it’s about building a future-ready airline,” said Izham. “We’re laying the foundation for long-term resilience over the next 5, 10, or even 15 years.”
