Putrajaya: The Malaysian Aviation Commission (Mavcom) estimates Malaysia’s air passenger traffic will reach between 105.8 million and 112.9 million passengers this year, according to Transport Minister Anthony Locke.
He said passenger traffic this year is expected to surpass the previous record of 109.3 million set in 2019, showing a growth of 8.4-15.6% year-on-year.
“This growth is expected to be driven by growth in airline seat capacity, increasing demand for international travel and overall improvement in household income levels.
“Airlines are also projected to increase their capacity by 15.8% in 2025 on the back of a projected 21.1% growth in domestic travel,” Loke said today at a press conference on Malaysia’s 2024 passenger and cargo traffic performance and outlook for 2025 “
He highlighted that Malaysia’s air passenger traffic has now reached 90% of pre-pandemic levels, a significant rebound from the sharp decline experienced during COVID-19.
In 2020, passenger numbers dropped to 26.7 million, with most activities taking place at the beginning of the year before restrictions were imposed. “The situation worsened in 2021 when international borders were closed,” he said.
However, Locke said the supply chain remains a major challenge for the industry due to the pandemic, causing aircraft manufacturing delays, component shortages and global logistics disruption.
Despite these issues, Malaysian Airlines is actively addressing the challenges by reevaluating cost structures, optimizing maintenance schedules, renegotiating supplier contracts and reducing overhead expenses.
“Looking ahead to this year, the macroeconomic outlook is positive, with global economic growth projected to remain steady at 3.2% year-on-year, while the ASEAN region’s economy is expected to grow 4.5% year-on-year.
“Malaysia’s GDP is projected to grow by 4.5-5.5% year-on-year, while the ringgit is expected to stabilize at RM4.45 against the US dollar. Additionally, average fuel costs are projected to decline to 26.4% (2024: 28.9%) of operating expenses, relieving some of the cost pressure on airlines,” Locke said.
Meanwhile, Mavcom forecasts air cargo volume growth of 4.5-8.5% annually, supported by economic recovery and continued expansion in the e-commerce sector.
In 2024, Malaysia’s air passenger traffic is expected to grow 14.3% year-on-year to 97.1 million passengers, led by growth in ASEAN and international regions, an increase of 19.8% and 38.9% respectively. This represents 89% of 2019’s pre-pandemic level of 109.3 million passengers.
Domestic passenger traffic grew by 2.2%, driven by factors such as increase in airline seat capacity, visa relaxation for travelers from China and India and better connectivity to key destinations including China, India, Indonesia, South Korea, Australia and the Gulf countries. is supported. – Bernama
