PETALING JAYA: The local aviation industry is showing a steady recovery with total passenger traffic for the first three months of the year (Q1’22) increasing fivefold year-on-year (y-o-y) to 8.7 million compared with 1.7 million in the same quarter last year on the back of low base effect, according to the Malaysian Aviation Commission (Mavcom).
The passenger segment accounted for 88.8% of total air traffic, driven significantly by domestic travellers. As of May 2022, Malaysia’s year-to-date air passenger traffic stood at 16.3 million, a 574.6% growth compared with the same period in 2021. International air passenger traffic reached 1.0 million in May 2022, the first time since March 2020.
Mavcom executive chairman Datuk Seri Saripuddin Kassim said the aviation industry has made further progress in recovery from the Covid-19 pandemic following the easing of travel restrictions in Malaysia, as indicated by the increase in total passenger traffic in early 2022.
“With the country’s international borders having reopened since April 2022, we have continued to see an uptick driven by pent-up demand for travel. While we understand the public remains cautious in the face of global conflicts and existing economic uncertainties, the commission remains positive that the aviation sector will continue to recover in 2022 with the right measures in place,” he said in a statement following the release of its biannual industry report, Waypoint.
The commission reported that total cargo volume recorded a 5.9% y-o-y increase in Q1’22, driven by the return of belly cargo capacity following the gradual resumption of international flights. This translated into a growth in cargo volume to 5.1 billion in terms of freight tonne kilometres (FTK), up from 4.8 billion FTK during Q1’21. Further supporting this expansion was the solid growth seen within the e-commerce industry and the electrical and electronics (E&E) sector.
On the 2022 air passenger traffic and cargo outlook, Mavcom has maintained its forecast in December 2021 that passenger traffic will increase between 200% and 350% y-o-y, representing an estimated 32.6 million to 49.0 million passengers, whereas air cargo traffic is expected to expand between 3.9% and 6.7% y-o-y, translating to 21.5 billion to 22.0 billion FTK, as both air passenger traffic and air cargo have performed within expectations.
Meanwhile, the commission highlights a divergence in the domestic and international airfare trends since the beginning of the Covid-19 pandemic. On average, domestic airfares for the economy class in Asean, Australia, and China have mostly been below pre-pandemic levels, while international airfares for the same countries recorded a significant hike and have remained above 2019 levels.
Additionally, as of March 31, 2022, Mavcom has received a total of 22 Air Traffic Right (ATR) applications, of which 21 were approved, representing a 95.5% approval rate. About 13 ATR were allocated for international routes, while the remaining eight ATR were awarded to domestic routes, half of which were awarded to SKS Airways, one of the newest airlines in Malaysia. AirAsia, Malaysia Airlines, M Jets International, and MyJet Xpress received three ATR each, while both MAB Kargo and MASwings received two ATR, followed by AirAsia X which was accorded one ATR. This signifies an encouraging development in the continual recovery of Malaysia’s aviation industry.
