Malaysia: Local and foreign airlines to increase seat capacity

Local airlines and the top-five foreign carriers flying into Malaysia are projected to boost seat capacity by 24% and 31% respectively, in 2024. According to MIDF Research, Malaysia Airports Holdings Bhd (MAHB) is actively expanding its hub, aiming for 83 airlines operating from domestic airports in the next two years -- exceeding the 2019 figure by 20%. Airlines anticipated to enter in the second half of 2024 include Air India, British Airways and Qantas, added the research firm. “We project an 85% recovery of the 2019 levels in the current year, with domestic rebounding at 90% and international at 80%. Our preliminary estimate indicates a projected growth of 4% in overall traffic next year compared to 2019 levels to be propelled by the expansion of local airline fleets, the return of both new and existing foreign airlines and a gradual resurgence of Chinese tourists,” MIDF Research said in a report. MIDF Research said air traffic for this month is expected to receive a partial boost from the 30-day visa-free entry agreements with China, India, and the Middle East, in addition to the peak travel season. For November, despite it being an off-peak travel season, it noted that Malaysian airports recorded a 27.4% year-on-year (y-o-y) rise in passenger movements, reaching 77% of pre-pandemic levels (domestic: 75%, international: 78%), with 6.6m passengers.<br/>