KUALA LUMPUR - MALAYSIAN Airlines said on Thursday its profit plummeted 71 per cent in 2008, hit by the global slowdown and an overcrowded market, and would cut capacity by five per cent this year.

The national carrier said that net profit in the three months to December fell 81 per cent to 46 million ringgit (S$19 million) from 241.9 million ringgit a year ago.

For the full year, it posted a net profit of 244 million ringgit, down from 851.4 million ringgit in 2007, and well short of its earnings target of 400-500 million ringgit for 2008.

Managing director Idris Jala, who has overhauled the airline after massive losses in 2005, said it was a major achievement to turn a profit in the fourth quarter.

'This is solid performance, which shows that if we set our minds to do the impossible, we can do it. We maintained our profitability streak,' he said in a statement. -- AFP