The return of Boeing 737 Max jets destined for the Chinese market may speed up plane deliveries to Malaysia Airlines, but analysts warn about expanding too quickly, noting how wider costs are poised to spike as parts become more expensive and consumers prepare to take fewer flights.
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Malaysia Aviation Group (MAG), the parent company of Malaysia Airlines, is flying high. It recorded a profit for the third year in a row in 2024 – its longest gaining streak since a major restructuring a decade ago.
And having had to cut nearly a fifth of its flight capacity due to the global slowdown, aircraft delivery delays caused by Boeing manufacturing defects, and engine issues from other suppliers, it is eager to expand.
The group, which placed an order for 30 Boeing 737 Max jets in March, with options for another 30, said the situation between the US aircraft manufacturer and China could allow it to secure the planes earlier than the slated 2029 to 2030 dates.
Two Boeing jets set for use by a Chinese airline have gone back to the United States since Sunday, Reuters reported citing flight data, apparent victims of the snowballing trade war between the world’s largest economies.
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