Malaysia Airports Records 89% Higher Revenues As Traffic Continues To Recover Post-Pandemic
The Malaysia Airports Holdings Berhad Group (the Group) reported its financial results for the period ending 30 September 2022 (9M22), reporting Earnings Before Interest Taxes, Depreciation and Amortisation (EBITDA) of RM860.0 million on the back of RM2.12 billion revenues, or 89.4% higher compared to the revenues for the same period last year (9M21).
The significantly improved financials were underpinned by a continued recovery in passenger traffic in both its Malaysia and Turkey operations, with 58.1 million passenger movements recorded in 9M22, a three-fold increase compared to 21.9 million in 9M21, and a recovery of 55.5% against pre-pandemic levels as well as the Group’s continued pursuit of various cost efficiency measures.
As a result, net loss for the Group in 9M22 markedly narrowed by over 70.0% to RM171.9 million from RM629.7 million in 9M21. Net loss for the Group in the third quarter of the financial year (3Q22) also significantly narrowed to RM9.0 million from RM182.3 million recorded in the prior year corresponding period.
Group Managing Director Dato' Iskandar Mizal Mahmood is cautiously optimistic on the Group's future performance, "Based on the last several months, we can see that passenger traffic is consistently improving and recovering well when compared to pre-pandemic levels. Similar to the last two years, we will continue to be prudent in managing our costs. At the same time, we will increase our efforts in pursuing non-aeronautical avenues to further strengthen the Group’s financial position."
Recently, the Group executed the Development Agreement and Land Lease Agreement with the Government of Malaysia, granting the Group via its wholly-owned subsidiary, KLIA Aeropolis Sdn Bhd, the rights to develop designated land within the KLIA vicinity for a period of 99 years. The execution of these agreements is expected to contribute positively to future non-aeronautical earnings of the Group while positioning KLIA as a major regional aerospace and aeronautical hub and catalysing the nation’s economic development.
The Group’s Malaysia operations recorded 35.2 million passenger movements in 9M22, against 4.0 million in 9M21, and a 45.2% recovery against the corresponding pre-pandemic period in 2019. Passenger movements in Malaysia exceeded the 5 million mark for the first time since March 2020, reaching 5.3 million passengers in September 2022. In the same month, the Group’s Malaysia operations also recorded new highs in international and domestic load factors since the pandemic began, at 76.9% and 74.0% respectively.
Meanwhile, ISG registered 22.9 million total passenger movements in 9M22, against 17.9 million in 9M21, and an 84.6% recovery against pre-pandemic levels. For 9M22, ISG continued to show promising trends in international passenger movements, recording 6.6% higher international passengers than pre-pandemic levels, which helped boost its earnings with their higher yields.