KUALA LUMPUR, Dec 15 — Malaysia Aviation Group (MAG) has yet to declare any dividend payout to its main shareholder, Khazanah Nasional Bhd, although the group is hopeful of sustaining profitability from 2026 or 2027 onwards as it advances its long-term growth plans.

MAG managing director and group chief executive officer Captain Izham Ismail said that while dividend payment remains an aspiration, the group’s immediate focus is on strengthening its financial position to support expansion under its Long-Term Business Plan 3.0 (LTBP3.0).

“There is no dividend payout yet. The shareholder is very cognisant of the investment required for our growth,” he told reporters at the media briefing on LTBP3.0 here today.

He said funding for the group’s upcoming fleet expansion will not come from shareholders, as MAG intends to raise capital independently through a combination of sales, finance leases, or capital market instruments.

“Dividend is our journey, but it has not been better over the last few years,” he said. 

Capex priority, no shareholder funding

MAG is planning significant capital expenditure (capex) over the next few years, including the acquisition of about 20 wide-body and 30 narrow-body aircraft, as part of its fleet renewal and capacity growth strategy.

Group chief financial officer Boo Hui Yee said the shareholder’s priority is for MAG to be financially self-sustaining, with reinvestment into the business taking precedence over dividend distribution at this stage.

“For us to reinvest in the business is the top priority. Dividend payment is not a top priority given the scale of capital required,” she said.

MAG is also exploring funding options in currencies other than the ringgit, such as the US dollar or euro, to create a natural hedge.

The group also expects to raise its operating profit margin to nine per cent by 2030.

No comment on relisting plans 

Responding to a question on whether MAG could be relisted on Bursa Malaysia in the future, Captain Izham said the matter falls entirely under the purview of the shareholder.

“With regards to listing, it is beyond MAG. That is a decision for the shareholder,” he said, adding that he was not in a position to comment further.

MH370 claim under legal review 

On the reported claim by Chinese parties linked to the disappearance of Malaysia Airlines flight MH370, Captain Izham said the matter is currently being handled by Malaysia Airlines and its legal counsel.

“We have a holding statement on that. It is being managed by Malaysia Airlines and its lawyers. Maybe it is only a co-defendant at the moment. We do not have much of a mandate as it is under legal process,” he said.

Captain Izham, who will retire before the end of his contract on Jan 31, 2026, said the group is now focused on executing LTBP 3.0 and ensuring the organisation remains financially resilient as it enters its next phase of growth.

On Dec 8, the Beijing court ordered Malaysia Airlines to pay some families of passengers on board flight MH370 2.9 million yuan per passenger in compensation.

Firefly business remains under review, depending on performance 

Speaking about Firefly, a subsidiary of MAG, Captain Izham said the business remains under review, with its future dependent on performance over the next few years.

He said Firefly, which was expanded into jet operations to capture opportunities in the value segment, is now being tested at Kuala Lumpur International Airport (KLIA) Terminal 1 to support network feed into Malaysia Airlines.

“If it is going south, then we have to make some drastic decisions by then. I would think circa 2028 or 2029, all options will be on the table,” he said. — Bernama