Malaysia Airlines expects job cuts, more financial losses

KUALA LUMPUR, Malaysia, Aug. 28 (UPI) -- Malaysia Airlines, citing a sharp decline in passenger bookings, warned of additional financial losses in the second half of 2014.

The airline, affected by the disappearance and presumed crash of MH370 in March with 239 passengers aboard, and the downing of MH17 over Ukraine in July, in which 298 passengers were killed, led to a second quarter loss of 307 million Malaysian ringgit ($97.4 million).

"We expected the impact of MH370 on the performance in quarter two," said chief executive Ahmad Jauhari Yahya.

"Given that, our team put in much hard work and effort to regain market confidence and rebuild sales. Tragically, just as we were beginning to see signs of recovery in all regions, we were dealt the blow of MH17. The full financial impact of the double tragedies of MH370 and MH17 is expected to hit Malaysia Airlines in the second half of the year."

The airline, owned by Malaysian state investment firm Khazanah Nasional, which recently purchased the 30 percent of the company it did not already own and delisted it from the local stock market, is expected to announce it's corporate restructuring and re-listing plan Friday.

The airline said passenger bookings were down by 33 percent since the Ukraine incident, and media reports have suggested a quarter of Malaysia Airlines' 19,500 employees could lose their jobs as international routes are eliminated.