"As goodwill, to ease the immediate families of the passengers with their economic needs, the airline is offering a financial assistance of USD 5,000 to the families of each passenger," a statement released by the Malaysia Airlines said.
"Funds have already been made available for this purpose. This financial assistance will not be offset against the final compensation nor affect the families' legal rights to claim," it said.
The airlines will also provide hotel accommodation, meals, and transport assistance to the families of the victims of plane crash, the statement added.
Flight MH17 crashed after being hit by a surface-to-air missile fired from the rebel-held area. All 298 people- 283 passengers and 15 crew members- on board were killed.
This is the second Malaysian airlines plane to meet with an accident after MH370 which mysteriously disappeared en route from Kuala Lumpur to Beijing on March 8, carrying 239 people.