MIDF Research said that passenger traffic at Malaysia’s airports reached 7.6 million passengers as in April 2024.
PETALING JAYA: MIDF Research is keeping a cautious stance pertaining to the recovery of the aviation sector, while acknowledging several factors that have contributed to its post-lockdown resurgence.
Citing Malaysia Airports Holdings Bhd
(MAHB), the research unit said approximately 14 new carriers are set to commence services to Kuala Lumpur within the next two years, while among these, an estimated five carriers have already initiated operations in the first quarter of 2024.
“This catalyses the recovery of international traffic, particularly with the expected arrival of airlines such as British Airways, Qantas, Air India, Lufthansa, Iberia and Finnair in the coming quarters.
“Their entry is expected to further stimulate non-Asean travel,” it said in a research note yesterday.
It pointed out that passenger traffic at Malaysia’s airports reached 7.6 million passengers as in April 2024, reflecting an 86% overall recovery, with the domestic and international segments posting 85% and 88% respectively.
The air travel resurgence for both the international and domestic sectors were notably fuelled by the Aidilfitri celebration from the second week of April, as airlines continued to concentrate on expanding seat capacity to countries with visa waivers.
“During the month, AirAsia introduced a new scheduled flight from Kuala Lumpur to Jaipur four times a week, alongside the reinstatement of flights to Visakhapatnam thrice weekly.
“Furthermore, Cambodia Airways commenced thrice-weekly services to Kuala Lumpur from Phnom Penh,” it revealed.
Notably, however, for the past six months, MIDF Research observed that the international sector has consistently outpaced the domestic sector in terms of recovery.
“This trend has been bolstered by Asean travel, boasting a 91% recovery rate, while non-Asean travel stands at a slightly lower 85%,” the research unit said, before adding that domestic sector recovery had remained within the range of 80% to 85% in recent months, averaging 83% for the first four months of the year.
This slower domestic recovery is likely linked to limited aircraft availability, which consequently restricts seat capacity growth, it added.
Upholding its “neutral” call on the aviation industry, MIDF is keeping its traffic projections unchanged, indicating a 2% growth compared to 2019 levels, which aligns with the higher-range forecast of the Malaysian Aviation Commission.
“We anticipate further guidance from MAHB regarding the achievability of these projections, with its results briefing scheduled for next week.
“However, notable downside risks include potential delays in AirAsia’s full fleet reactivation and disruptions in Boeing aircraft deliveries to local airlines,” it said.
