April 3 (Reuters) - Elon Musk is requiring banks and other advisers working on SpaceX's planned IPO to buy subscriptions to Grok, his artificial intelligence chatbot, the New York Times reported on Friday, citing people familiar with the matter.
Malaysia Aviation Group to deploy over 2,700 flights and fixed fares for Ramadan and Hari Raya Aidilfitri travel KUALA LUMPUR: Malaysia Aviation Group has strengthened its resilience against fuel price volatility through a structured hedging strategy to counter rising costs while maintaining a steady expansion trajectory with particular focus on lucrative China and other key Asian markets.
Its newly appointed president and group chief executive officer , Captain Nasaruddin A. Bakar, said the airline group was navigating a challenging operating environment marked by rising fuel prices and geopolitical uncertainties, which had significantly increased cost pressures across the aviation industry. Despite these challenges, he said MAG had secured sufficient fuel supply through a combination of long-term contracts with suppliers and operational adjustments to ensure continuity. He said the ongoing Middle East conflict, which was causing volatility in fuel prices and foreign exchange rates , had significantly impacted the profitability of the airline industry, raising fuel costs by RM51mil, with a RM203mil negative impact on profit and loss due to forex.He said fuel costs, which typically accounted for about 40% of MAG's total operating expenses, had risen sharply amid the ongoing crisis, now contributing approximately 50% of overall costs. “The increase in fuel prices has been significant, especially with disruptions affecting global supply. This has pushed our fuel cost component higher than normal levels,” he told Bernama in an exclusive interview recently. Nasaruddin said around 20% of global fuel supply had been impacted by the crisis, creating additional strain on airlines worldwide. As for MAG, “in certain locations where supply was constrained, we were carrying additional fuel from other stations to maintain operations. It required careful planning, but we were able to manage it,” he said.Nasaruddin, who took over the helm of the airline group in February 2026, said MAG had adopted a quarterly fuel hedging approach, allowing the group to balance cost stability with market flexibility. The group had hedged approximately 36% of its fuel requirements for the first quarter, increasing coverage to 50% in the second quarter before tapering to 40% in the third quarter and 25% in the fourth quarter. “This approach allowed us to manage volatility more effectively while still benefiting from potential price movements,” he said. He also noted that hedging remained a key component of MAG's financial strategy, particularly in an environment where fuel prices could shift rapidly due to external factors. Beyond hedging, MAG was also focusing on strengthening its revenue streams to offset higher operating costs. He said the national carrier continued to employ dynamic pricing strategies, adjusting fares in response to market demand and competitive conditions to maintain yield. “Our pricing had to remain competitive. We could not price too high and at the same time we could not go too low. It was about striking the right balance to sustain our revenue,” he said. In addition, the airline was enhancing ancillary revenue by offering value-added services such as seat upgrades and other in-flight products to improve overall route profitability. “The objective was to ensure that each flight remained financially viable despite the increase in costs,” he said.Looking ahead, Nasaruddin said MAG was maintaining its long-term growth strategy through 2030 with a clear focus on expanding its footprint in Asia, particularly in China and India. He said China would be a key priority market over the next one to two years, supported by strong travel demand and increasing connectivity opportunities. “We were operating nine destinations in China and about 10 in India. These markets continued to show strong and stable demand and we saw significant potential for further growth,” he said. The group was also looking into opportunities to introduce new routes in the coming months as part of its broader network expansion plan. On Friday , MAG's subsidiary, Malaysia Airlines Bhd, expanded its network with the launch of new routes to Shenzhen and Changsha in China while resuming flights to Fukuoka in Japan starting from July this year.MAG continued to see robust passenger demand across most of its network, with load factors consistently hovering in the high 80% range, close to 90%. Strong traffic flows had been observed from Australia and New Zealand, Australasia, Europe as well as South Asia including India. However, Nasaruddin cautioned that demand could soften if geopolitical tensions persisted or escalated further. “If the conflict prolonged, there was a possibility of softening, particularly in long-haul travel. But at that point, demand remained stable,” he said. He stressed that the group remained agile in its operations, reviewing flight schedules and capacity on a daily basis to respond to evolving conditions.Despite near-term uncertainties, MAG said the group would continue investing in digital transformation, product enhancements and workforce development to strengthen its competitive position. “Our focus was not only on managing short-term challenges but also ensuring that we stayed on track with our long-term plans. We would continue to invest in our digital capabilities, our people and our products,” Nasaruddin said. He added that while external risks such as fuel volatility and geopolitical developments remained beyond the group's control, MAG's strategy was centred on adaptability and disciplined execution. “In this environment, it was about managing both the short term and the long term simultaneously. We remained confident in our strategy and ability to navigate these challenges,” he said. The group also planned to expand its mainline fleet to 116 aircraft, serving 106 destinations by 2035. MAG's first-phase fleet modernisation would be completed by 2028 with a total of 25 Boeing 737-800s and 20 A330neos.Follow us on our official
Fuel Price Volatility Structured Hedging Strategy Captain Nasaruddin A. Bakar Geopolitical Uncertainties Fuel Cost Component Quarterly Hedging Strategy Dynamic Pricing Strategies Ancillary Revenue Long-Term Growth Strategy
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