Malaysia Airports Holdings Bhd reported good growth for both passengers and revenues announced recently Malaysia largest airports’ operator. MAHB pre-tax profit for the first quarter ended March 31, 2017 surged 161.5 per cent to RM99.91 million (US$23.5 million) from RM38.21 million (US$8.89 million) registered in the same quarter last year. Analysts declared that the better than expected result was due to a strong surge in international passengers traffic.
First-quarter revenues were up by 7.3%, on par with passengers figures, up by 7.5% during the same period of time. The strong progression in international traffic put back the ratio between domestic and international passengers share at 50:50. Alone, international passengers movements were up by 9.5% for all MAHB airports, influenced by a surge in the numbers of Chinese tourists, up by 28% during the first quarter. According to MAHB managing director Datuk Badlisham Ghazali, the growth in traffic is in the upper forecasts of the airport’s company. Earlier this year, Mr. Ghazali estimated passengers’ growth in a range of 5% to 7%.
MAHB continues its efforts to turn Kuala Lumpur International Airport (KLIA) into a world-class airport city under the KLIA Aeropolis initiative. Aviation services are due tto be located while the opening of the Mitsui Outlet Park KLIA as well as a mall at KLIA2 have turned the airport’s into an attractive shopping destination. Mitsui Outlet Park is currently working on its expansion phase, which would be completed by 2018.
Thus far, the Mitsui Outlet Park KLIA is up and running, and works on the second phase is expected to be completed in 2018. This outlet is one of the three clusters in the 24,710-acre development surrounding KLIA.
There will also be air cargo and logistics, aerospace and aviation parks, and meetings, incentives, conventions and exhibitions and leisure facilities. All these are expected to boost MAHB’s non-aeronautical income stream, which is about 50% now.
MAHB 39 airports in Malaysia and ended 2016 with a 6% growth rate to 88.83 million passengers. It beat its earlier forecast of 2.8%. Extra traffic came from the return of Chinese travellers, a surge in India inbound travellers as well as additional competition in the low cost sector.