The mysterious loss of flight MH370 deepened losses at Malaysia Airlines in the first quarter of the year.
The airline saw losses for the three months to March 31 increase to 443 million ringgit ($137.4 million) from 279 million ringgit in the same period last year.
CEO Ahmad Jauhari Yahya said the results were made worse with the impact on air travel in general following the disappearance of MH370 in March.
“The whole market has reacted by slowing down demand,” he said.
“While the search for MH370 continues today more than two months since it disappeared, our group needs to accelerate efforts to improve its revenue stream and better manage our high costs which have increased in line with greater capacity.
“This need has become even more urgent for Malaysia Airlines’ future survival and sustainability in a market that is not showing any signs of letting up on competition,” added Ahmad Jauhari.
Much of the costs associated by the loss of the Boeing 777, which had 239 people on board, will be covered by insurance.
But the airline’s operations were slowed for several weeks since early March when MH370 disappeared.
Marketing activities were halted out of respect for the families of those on board the Beijing-bound Boeing 777 aircraft, MAS said.
Ahmad Jauhari said: “We have gone through two years of pushing for improvements in operations.
“We still have much work ahead of us to deal with the reality of the business and competition as a dynamic and nimble operation.
“We maintain our commitment to remain competitive, to deliver an exceptional quality product and service with safety as our utmost priority, and to provide returns to our shareholders in the long-term.
“MH370 has brought out the best of our Malaysia Airlines team to stand united to face the crisis. We will be leveraging on this team spirit to fight for our future,” added Ahmad Jauhari.