Malaysia Airports Holdings boosted as flights recommence
SEPANG, MALAYSIA – Malaysia Airports Holdings Berhad (KLSE:AIRPORT) will see an immediate boost to the numbers of aircraft and passengers at its airports in the coming days as major international and domestic travel routes recommence.
The airport owner and operator manages 39 airports across Malaysia, including the Kuala Lumpur International Airport – one of the largest in the Asia region.
It also owns and operates the Istanbul Sabiha Gökçen Airport, one of three airports in Turkey’s most populous city and one of the top-five busiest airports in Europe.
Like all other stocks in the sector across the world, Malaysia Airports Holdings saw almost 50% wiped from the value of its shares throughout 2020, as airports came to a standstill due to COVID-19.
Since October 2021, the company’s share price has recovered by more than 50%, however it still remains someway off 2019 highs.
Shareholders will however be optimistic as more flights recommence.
Malaysia Airports Holdings announces new routes
At the Kuala Lumpur International Aiport (KLIA), Malaysia Airlines has reinstated routes to international destinations such as London and Jakarta in recent days. Malaysia’s flagship airline has also added 80 additional flights to its domestic destinations which have increased KLIA’s total domestic weekly frequencies by 26.7%.
At the Istanbul Sabiha Gokcen International Airport (ISG), destinations recommencing in recent days include Hamburg, Basel, Zurich, Sarajevo, Copenhagen, Lyon, and Hannover. Providing up to 25 additional weekly flight frequencies.
Malaysia Airports says a total of 20 new international destinations and 80 additional domestic flights have boosted its airports.
Group chief executive officer of Malaysia Airports, Dato’ Mohd Shukrie Mohd Salleh, says even though travel restrictions remain in place world-wide, there is currently increased demand for air travel.
“We continue to step up our services to prepare for the return of travellers as we gradually recover from the COVID-19 pandemic,” said Dato’ Mohd Shukrie Mohd Salleh in a statement.
“In the 1st quarter this year, KLIA continues to excel in the global airport benchmark – Airport Service Quality (ASQ)- and achieved a preliminary score of 4.99 out of 5.00, topping the 4.98 score achieved in 2020. In addition, we have also enhanced our safety and health standards through the global Airport Health Accreditation programme, whereby ISG was the first airport in the Group to be certified by the Airports Council International last month.”
Six more of Malaysia Aiports’ international airports (including KLIA) are expected to be certified by the Airports Council International by the end of June 2021.
While major foreign airlines have suspended passenger flights, Malaysia Airports is still benefitting from cargo flights.
British Airways (BA) has introduced a new London to Malaysia cargo-only service.
Malaysian cargo airline, Raya Airways, has also recently expanded its aircraft fleet with a new Boeing 767-200F to increase capacity, frequency, and connectivity due to the boom in the e-commerce sector during the pandemic.