KUCHING: Logistics provider Hubline Bhd has warned that the price surge in bunker and aviation fuels are exerting pressure on the group’s profit margins for the second half of its current financial year ending September 30, 2026 (FY2026).
Hubline said the operating environment for both the group’s shipping and aviation segments remains challenging amidst heightened geopolitical tensions in the Middle East, continued volatility in global fuel prices and fluctuations in the US dollar– ringgit exchange rate.
“For the shipping segment, the surge in bunker costs and currency fluctuations will exert pressure on margins over the next one to two quarters.
The aviation segment also faces higher aviation fuel costs and increased volatility in the US dollar,” the company said when releasing its 2Q2026 quarterly results.
In 2Q2026, Hubline group net loss widened to about RM2.84 million (2Q2025:-RM2.01 million) as revenue fell to RM38.5 million (RM40.7 million).
The company’s losses per share increased to 0.07sen from 0.05sen.
In the current quarter, the shipping segment recorded lower revenue of RM24.34 million (2Q2025:RM25.85 million) whereas the aviation segment posted revenue of RM14.11 million (RM14.89 million).
Hubline said the shipping segment’s drop in revenue was due to the unfavourable foreign exchange conversion of freight income from US dollar to ringgit.
“Alongside the drop in top line revenue due to unfavourable foreign exchange rates, the shipping segment incurred additional bunker expenditure due to the sharp rise in bunker fuel during the quarter,” it added in explanatory notes to its financial results.
Hubline said revenue from the general aviation segment was generally consistent with the preceding year quarter.
This helped to offset the lower revenue from the flying academy on completion of cadets training contracts and graduation of cadets,” it added in explanatory notes to its financial results.
Hubline’s subsidiary Layang Layang Aerospace Sdn Bhd provides various air charter services, and aircraft maintenance service. The 2Q2026 financial results came in weaker as compared to the immediate preceding quarter (4Q2025) when revenue was higher at RM47.2 million (2Q2026:RM38.5 million) and after-tax profit oRM110,000 (-RM3.29 million).
Quarter-on-quarter, the shipping segment revenue decreased by RM1.88 million to RM24.34 million (RM26.22 million) due to the unfavourable currency exchange rate while the aviation segment revenue plunged by RM8.75 million to RM14.1 million (RM20.99 million) due to the completion of one-off aircraft charter project in the preceding quarter.
Going forward, Hubline said despite the various challenges facing the shipping segment, the group continues to benefit from its ongoing fleet renewal programme and learner barges, which support operational efficiency and improve cost competitiveness over the longer term.
On the aviation segment, Hubline said the group’s general aviation business continues to bid for new aviation charter and maintenance contracts, and will focus on efficient implementation of its ongoing contracts while maintaining service quality and cost optimisation in the near term.
