Malaysia Airlines posted a net profit of MYR121 million (US$34.54 million) for the quarter ending December 2006, marking a significant improvement over a loss of MYR611 million for the same quarter a year ago.

The result also represents the national carrier's second consecutive profitable quarter since the unveiling of its Business Turnaround Plan (BTP) in February 2006.

The improved performance was largely driven by an 18 per cent increase in passenger revenue to MYR2,550 million, cost reductions of MYR138 million, mainly relating to fuel expenses, network restructuring and improvements in productivity.

Malaysia Airlines also made a Q406 operating profit before finance costs and exceptional items of MYR94 million, a statement from the airline said.

Fourth quarter cargo revenue rose eight per cent to MYR687.5 million due to higher load which increased six percentage points to 66.8 per cent from 61.3 per cent.

For its 2006 full-year results, Malaysia Airlines made a loss after tax of RM136 million, which is a MYR1.6 billion improvement over the MYR1.7 billion loss for 2006.

Full year cargo revenue increased eight per cent to MYR2,471 million, from MYR2,296 million the previous year.