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Quick Summary 9.4 million domestic passengers recorded in January 2026 KLIA handled 5.9 million travellers (+8.2% YoY) New international routes launched to major Chinese cities Infrastructure upgrades underway to support Visit Malaysia Year 2026 Strong Start to Visit Malaysia Year 2026 Malaysia Airports Holdings Bhd  (MAHB)  reported a solid January, with  9.4 million domestic passenger movements , signalling a strong take-off for  Visit Malaysia Year 2026 (VMY 2026) . Leading the surge: Kuala Lumpur International Airport  (KLIA): 5.9 million passengers ( +8.2% YoY**) Penang International Airport  (PEN): 741,183 passengers ( +3.8% YoY**) Connectivity & Capacity Expansion MAHB highlighted Malaysia’s ambition to become  the most connected country in Asia-Pacific , supported by: Six new international routes  linking Malaysia to: Shanghai Jinan Hong Kong Hefei Guangzhou Harbin These routes connect  Kuala Lumpur, Kota Kinabalu, Tawau and Penan...

The investment will fund expansion and infrastructure upgrades as Boeing works toward its goal of producing 10 Dreamliners per month by 2026—double the current rate. The initiative will also create 500 new jobs over the next five years, strengthening Boeing’s position in the competitive aerospace market. Addressing Production Challenges Boeing has faced numerous setbacks in delivering its wide-body jets. Dreamliner deliveries were paused for nearly two years until mid-2022 due to production and regulatory issues. Additional challenges, including incomplete inspections and improperly installed fasteners, have delayed deliveries, leaving the company with 785 unfulfilled orders as of last month. The company has also struggled with delays in its 737 MAX production line, compounded by a machinist strike and quality issues earlier this year. Staying Competitive Boeing’s investment signals its commitment to resolving these challenges and catching up with rival Airbus, which plans to produce 1...

The Ministry of Transport (MOT) announced the continuation of subsidies for one-way flight tickets between Peninsular Malaysia and Sabah, Sarawak, and Labuan during major festive seasons for this year and next year. Key Details: Subsidy applies to Christmas 2024 , and for Chinese New Year, Hari Raya Aidilfitri, Kaamatan, Gawai , and Christmas 2025 . Subsidy covers one-way tickets priced over RM499 , excluding taxes and fees, with the government absorbing the difference between the original ticket price and the capped RM499 rate (lowered from the previous RM599 threshold). Implementation Periods: Christmas 2024 : Dec 21–24 Chinese New Year 2025 : Jan 25–28 Hari Raya Aidilfitri 2025 : March 27–30 Kaamatan 2025 : May 26–29 Gawai 2025 : May 28–31 Ticket Terms: Fixed fare tickets will be available starting 12:01 AM on Dec 6 via airline websites. Restrictions include: No date or flight changes. No name changes. Tickets are non-refundable. Consumer Protection: Passengers will be safeguarded ...

U.S. airline stocks surged in afternoon trading after Southwest Airlines (LUV) and American Airlines (AAL) raised their fourth-quarter earnings forecasts , signaling optimism in the travel sector. Key Stock Movements Southwest Airlines (LUV): Up 2.7% , now forecasting Q4 revenue per available seat mile (RASM) to rise 5.5%–7% , up from the earlier estimate of 3.5%–5.5% . American Airlines (AAL): Jumped 16% , revising its adjusted earnings per share (EPS) outlook to $0.55–$0.75 , compared to its earlier range of $0.25–$0.50 . Broader Airline Sector Performance Delta Air Lines (DAL), United Airlines (UAL), Alaska Air Group (ALK): Shares rose between 1.5% and 4% in morning trading. S&P 1500 Airlines Index: Climbed 3% , reaching its highest level since June 2021 . JetBlue's Forecast JetBlue Airways (JBLU): Revised its 2024 revenue outlook with a smaller dip expected as domestic travel demand rebounds. Despite the update, JetBlue’s stock fell 0.98% as of 1:19 p.m. ET. Mark...

Capital A Bhd   saw its shares drop   7%   to   RM1.01   in early trade on Friday, reducing its market value to   RM4.6 billion , following a   3QFY2024   performance that fell below most analysts' expectations despite being boosted by   forex gains . 3QFY2024 Highlights: Core loss after tax and minority interest (Latmi):   RM143.4 million , bringing  9MFY2024  loss after tax to  RM119.5 million . Results missed  Hong Leong Investment Bank’s (HLIB)  projection of  RM754.9 million Patmi  but aligned with consensus of  RM459 million Patmi . Excluded  exceptional items (EIs)  totaling  RM1.2 billion , primarily due to  RM1.5 billion forex gains , offset by deferred tax losses. Quarter-on-Quarter Performance: Core Latmi worsened from  RM57.6 million  in the previous quarter to  RM143.4 million , driven by: Seasonally weak yields. Higher costs. Losses from  ADE MR...

  The Malaysian Aviation Commission (Mavcom) received 2,083 complaints in the first half of 2024 (1H2024), reflecting a 32% year-on-year decrease compared to the same period in 2023, according to its bi-annual consumer report . Of these complaints, 98% were related to airlines , while the remaining 2% concerned airport services . Firefly , a subsidiary of Malaysia Aviation Group, recorded the highest number of complaints, with 166 complaints per million passengers , followed by Batik Air Malaysia (formerly Malindo Air) at 139 complaints , and AirAsia X Bhd at 127 complaints . The top three complaint categories were flight cancellations, mishandled baggage, and flight delays , which made up 42% of the total complaints. Despite the high volume, Mavcom resolved 97% of the complaints, with 45% of them resolved in favor of consumers after airlines reversed initial decisions. However, 579 complaints were deemed unactionable due to incomplete documentation or other jurisdiction...

Striking Boeing Co workers have rejected the company’s latest contract offer, which includes a 30% pay increase over four years. The union representing 33,000 Boeing employees , the International Association of Machinists and Aerospace Workers (IAM) , stated that members overwhelmingly deemed the proposal “inadequate” and “disrespectful.” “You’ve told us loud and clear that this proposal didn’t go far enough to address our members’ priorities,” the union said in a statement. The union is seeking to resume either mediated or direct talks to resolve the stand-off, which has halted production of key Boeing models, including the 737 Max . Boeing bypassed traditional negotiating sessions by directly presenting the offer to workers, a move that frustrated union leaders. While the company withdrew a September 27 deadline for the offer’s acceptance, it faces mounting pressure to resolve the strike, as its jetliner factories near Seattle remain idle, severely impacting its finances. The pro...

According to MIDF Research, strong demand has maintained airlines' load factor above pre-Covid levels during the second quarter of 2024 (2Q2024). Although Malaysia's full recovery in passenger traffic may face delays due to challenges such as aircraft delivery delays and shortages in parts and labor, a complete recovery appears inevitable. Key Findings from MIDF Research: Load Factor and Capacity Recovery: In the first half of 2024, the total seat capacity recovery reached 85%, with the average load factor increasing to 79%, which is 3.4 percentage points higher than in the first half of 2019. July 2024 showed a strong 92% recovery in passenger traffic, driven by international travel, which has outpaced domestic travel since November 2023. Contributing Factors to Recovery: The return and introduction of foreign airlines have strengthened the recovery. The number of airlines serving Malaysia has increased to 71, compared to 69 in 2019, with five more airlines expected in the sec...

  Malaysia saw a significant increase in air passenger traffic in June 2024, with a year-on-year rise of 12.1%, driven by a surge in domestic travel during the public holiday period. The total air passenger traffic for June reached 8.1 million people. Key Points: Monthly Increase: Air passenger traffic rose 2.3% from May to June 2024. Domestic vs. International: Traffic in June was evenly split between domestic and international flights, each making up 50% of the total. Pre-Pandemic Levels: Overall traffic in June was at 86.5% of pre-pandemic levels (June 2019), which stood at 9.4 million. Domestic Flights: Domestic air passenger traffic increased by 4.2% month-on-month to 4.1 million in June, up from 3.9 million in May. Air Cargo Traffic: Second Quarter Growth: Air cargo traffic in Q2 2024 increased by 5.5% to 241,895 metric tons from 229,195 metric tons in Q2 2023, driven by a surge in international cargo due to disruptions in the Red Sea. Quarterly Increase: On a quarter-o...

India’s Akasa Air is set to expand its routes to Southeast Asia and the Indian subcontinent, aiming to capitalize on the growing demand for international travel from the world’s most populous nation. The Mumbai-based budget airline is preparing to launch flights to Kathmandu, Nepal, and Dhaka, Bangladesh, according to Praveen Iyer, chief commercial officer at Akasa’s parent company SNV Aviation Pvt. Key Expansion Plans: New Destinations : Akasa is targeting popular tourist destinations such as Thailand, Vietnam, Malaysia, and Indonesia for its future expansion. Demand Growth : “Indians in general love travelling. That prompts us to look at the next set of expansion,” Iyer said. He highlighted strong outbound traffic from India starting October, particularly to Southeast Asian destinations. Strategic Moves: Fleet Expansion : Akasa has ordered 150 Boeing 737 Max jets in January, increasing its total order book to 226 jets, which will be delivered over the next eight years. The airline pl...

Airbus SE’s operating profit dropped by over half in the second quarter due to significant charges at its space division, coupled with reduced aircraft deliveries. Key Takeaways: Earnings Drop: Adjusted earnings before interest and taxes fell 56% to €814 million (RM4.09 billion) for the three months ending in June. The company incurred a €989 million charge at its space unit in the first half of the year, higher than previously forecasted. Production Challenges: Airbus faces production constraints, unable to build aircraft fast enough to meet the high demand for fuel-efficient jets. This situation has led the company to decline some prospective customers as its popular models are sold out into the next decade. Rival Boeing Co also faces similar production slowdowns. Parts Shortage: A shortage of components, including engines and cabin interiors, forced Airbus to cut its annual delivery target to 770 units and delay the monthly production rate increase of A320neo jets by a year. This...

AirAsia X Bhd (KL) announced on Friday that it will directly acquire Capital A Bhd's (KL) aviation business, bypassing the previously proposed internal reorganisation that involved setting up a new company (NewCo). This decision aims to expedite the takeover process. Key Points: Direct Acquisition: AirAsia X (AAX) will proceed with the acquisition of Capital A’s aviation business directly, foregoing the establishment of a NewCo. This change is intended to expedite the acquisition process. Reason for Change: The decision to abort the proposed internal reorganisation and terminate the agreement was based on weighing potential benefits against the time required for implementation. A critical factor was the importance of quickly completing the acquisition. Original Proposal: On April 25, AAX announced plans to take over Capital A’s aviation business — under AirAsia Bhd (AAB) and AirAsia Aviation Group Ltd (AAAGL) — through an internal reorganisation. The proposed reorganisation invo...

  American Airlines Group Inc cut its earnings outlook as it works to recover from earlier blunders that will impact revenue and profits for the rest of 2024. Key Takeaways: Earnings Outlook : Adjusted full-year profit is projected to be between 70 cents and US$1.30 per share, significantly lower than the previous outlook of up to US$3.25 per share. The airline also expects to break even in the third quarter, far below the 49-cent per share profit expected by analysts. Strategic Missteps : The lowered outlook, American’s second reduction this year, reflects the fallout from overly optimistic expectations for domestic demand and a misguided sales strategy that alienated corporate clients. Revenue Impact : The shift and loss of corporate business are expected to reduce American’s revenue by about US$1.5 billion this year, according to CEO Robert Isom. Corporate Feedback : “I’ve talked to dozens of CEOs, asking them to give me the straight scoop on how you perceive us,” Isom said in a...

Maintain neutral call with target price (TP) of RM2.50 AirAsia reported net profit of RM353.9m for its 3QFY16, compared to a net loss of RM405.7m. Excluding forex loss of RM2.7m, tax incentives of RM118.7m and gain on disposal of its aircraft of RM84.2m, its core net profit for the quarter was RM391.1m (3QFY15: core net profit of RM158.1m). For 9MFY16, AirAsia core net profit was RM1.18bn, which came in within our but above consensus full year expectations, accounting for 72.5% and 85.7% respectively. The improvement in 3Q results was due to higher passenger seat sales and aircraft operating lease income by 9.3% YoY and 29.3% YoY respectively, as well as lower fuel expenses by 20.6% YoY. We maintain our  Neutral  call on AirAsia, with target price of  RM2.50  pegged on 8x FY17F EPS. Our target price is based on FY17F enlarged share capital that includes the proposed share placement to Tune Live Sdn Bhd. 3QFY16 revenue was RM1.69bn (+11.3% YoY),  c...

Maintain overweight on aviation sector Aviation industry Last week, it was reported that the Transport Minister has confirmed the upward revision for PSCs, which will be implemented for all airports in Malaysia starting 1st January 2017.  While rates are not firmed up yet, tentative new rates suggest all airports will have the same structure with International and Domestic PSCs at RM73 and RM11 in addition to a new segment known as ASEAN routes at RM35. We are positive on the tentative rates, as they indicate 10% higher PSC revenue for AIRPORT translating to a potential 25% upgrade to our FY17E earnings. While the magnitude of hike might appear huge for AIRASIA operating in KLIA2, we note that the effective impact would be minimal as most of AIRASIA’s international flights are flown towards ASEAN countries, which will fall under the new RM35 ASEAN segment – allowing them to keep their competitive pricings. We upgrade AIRPORT’s FY17E earnings by 25% on the back of a 1...