MALAYSIA. Malaysia Airports today released its latest financial results for the quarter and six months to 30 June, with H1 revenues in the non-aeronautical segment decreasing by -46.1% to RM568.5 million (US$136.2 million) compared to the corresponding period last year.
Within this, retail fell by -69.3% to RM129.4 million (US$31 million) and other commercial revenues by -30.5% to RM439.1 million (US$105.2 million).
The group (which includes Malaysia’s major international airports plus Istanbul Sabiha Gökcen International Airport in Turkey) recorded overall revenue of RM1,206 million (US$289 million), -52% lower than H1 2019, with a passenger traffic decline of -60.5% the main cause.
Malaysia Airports recorded a pre-tax loss of RM303.9 million (US$73 million) compared to pre-tax profit of RM366.2 million in H1 2019.
Q2 non-aeronautical revenues fell by -63.4% year-on-year to RM193.1 million (US$46.3 million). This was a slightly better performance than that of overall revenues, which fell by -78.4%. This was due to the -96% contraction in Q2 passenger traffic across the business.
The group recorded a pre-tax loss of RM268.3 million (US$64.3 million) compared to pre-tax profit in Q2 2019 of RM201.6 million.
Commenting on prospects for recovery, Malaysia Airports said: “The Malaysian Aviation Commission has revised Malaysia traffic for 2020 to be in the range of -48.7% and – 50.3%. While Malaysia and Istanbul Sabiha Gökcen International Airport June traffic performances are encouraging, post lockdown demand for air travel is expected to be in stages with domestic sector leading the recovery.
“Resumption of international traffic is expected to be gradual mostly due to dependence on travel bubbles arrangements and a slower easing of border restriction as countries remain cautious. This is estimated to reflect better traffic in the coming months.
“The introduction of the Malaysia – Singapore Reciprocal Green Lane, announced by the Ministers of Foreign Affairs of Malaysia and Singapore on 14 July, is a welcome start for further relaxation in the opening of our borders.”
The company said that over half of all overseas carriers had resumed service at Kuala Lumpur International Airport, its largest location. The AirAsia Group, a key airline partner, plans to resume international service from late Q3, said the airport company.
