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This study empirically investigates the impact of operational performance on financial performance of Malaysia Airlines system (MAS). Based on twenty two (22) years’ annual time series data, step wise least square regression analysis is carried out to examine the relationship of variables. In addition, viable diagnostic tests are applied to verify the validity and reliability of the models. Interestingly, findings of the study revealed that operational performance of MAS has no impact on profitability, whereas, employee productivity, capacity and capacity Utilization have highly significant impact on revenues. Moreover, route rationalization has a negative impact on total revenues. Above all, further studies are suggested to investigate the impact of revenue and cost on profitability of MAS.

Abdul Majid Nasir, Adeel Ahmed, Waseem Barkat. (2017) Operational performance and financial performance of Malaysia Airlines, Paradigms , Vol 11, Issue 1.
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