KUALA LUMPUR: Malaysia Aviation Group Bhd’s (MAG) RM24.6 billion revenue by 2030 target remains on track despite mounting cost pressures from elevated jet fuel prices, with the group maintaining its long-term growth plans and fleet renewal strategy.
MAG president and group CEO Captain Nasaruddin A Bakar said the group’s Long-Term Business Plan 3.0 (LTBP3.0), which runs from 2026 to 2030, remained on course, supported by planned capacity expansion, aircraft investments and growth across its aviation services businesses.
“Our long-term business plan until 2030 is still on track in terms of growth, including the aircraft that we will announce and the aircraft that we have already purchased about three years ago. Those are still on track and hopefully all the plans remain intact to deliver the 2030 number,” he said on the sidelines of the 70th Assembly of Presidents of the Association of Asia Pacific Airlines (AAPA) here today.
MAG unveiled LTBP3.0 in December 2025, setting an ambition to more than double its topline revenue to over RM24 billion by 2030, from RM13.8 billion in 2024. The group’s revenue target has been reported at RM24.6 billion.
Nasaruddin said jet fuel prices had risen about 90% from pre-war levels, while Malaysia Airlines had increased its average fares by about 20% to 30% to cushion the impact.
He added that fuel prices were expected to remain elevated into 2027, with the group anticipating that the price environment seen in 2026 could persist into the following year.
He acknowledged that the fuel price increase had placed “significant pressure” on the group’s financial performance, underscoring the importance of maintaining cost discipline while continuing to invest in the business.
Nasaruddin shared that the group would announce its long-range widebody aircraft replacement plans within about a month.
Under LTBP3.0, MAG plans to expand capacity by more than 50% at an average annual growth rate of 8.5%, supported by fleet renewal and investment in next-generation aircraft. The group’s broader fleet programme includes Airbus A330neo and Boeing 737 aircraft, with the ambition to operate a modern mainline fleet of 116 aircraft by 2035.
MAG is also looking to strengthen its non-airline businesses to diversify revenue and reduce its reliance on passenger aviation.
Nasaruddin said airline operations currently contributed about 80% of the group’s total revenue, while non-airline businesses accounted for about 20% of group income. The non-airline portfolio includes MASkargo, ground handling and academy businesses.
He said the ground handling business was recording growth of about 4% a year, supported by demand from airlines operating in Malaysia, particularly at Kuala Lumpur International Airport (KLIA).
The group has added four airline customers in 2026 alone.
Nasaruddin said the business could benefit further as more airlines entered the Malaysian market, creating opportunities for MAG to provide ground handling services to a wider customer base.
The expansion of third-party businesses is consistent with LTBP3.0’s ambition to grow revenue beyond the group’s core airline operations.
MAG has set a target of increasing third-party revenue across its aviation services businesses by more than 60% by 2030.
The group’s growth plans, however, remain dependent on its ability to manage aircraft availability and operational constraints.
Nasaruddin said aircraft delivery delays arising from manufacturers’ supply chain challenges had affected the group’s business planning, as airlines typically sell tickets several months ahead based on expected aircraft availability.
He said airlines generally planned ticket sales around three to six months in advance, making it difficult to adjust operations when aircraft deliveries were delayed.
“When aircraft were not delivered according to schedule, we had to manage the resulting capacity constraints, including transferring passengers to other available aircraft.”
However, aircraft delivery delays were expected to have a minimal impact on next year’s earnings, unless they resulted in substantial capacity reductions, Nasaruddin said.
