Malaysia Aviation Group (MAG), the parent company of Malaysia Airlines, has warned that its operating costs could increase by up to 25 per cent due to global supply chain disruptions and new US tariffs.
MAG managing director, Izham Ismail, said MAG is monitoring cost movements closely, particularly for aircraft components affected by tariffs when shipped from other countries to the US.
“Naturally, there will be cost pressure – the cost of sales will go up, and businesses will pass on the cost to customers,” Izham shared at a recent press conference.
MAG’s concerns stem from the expected rise in aircraft component prices. This increase, coupled with ongoing global supply chain uncertainty, could impact the group’s profitability in 2025.
MAG reported a net profit after interest and tax of 54 million ringgit (US$12.3 million) last year….
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