MAHB records net loss of RM91.1m in 2Q20

The group’s revenue also declined 78.4% as passenger movements contracted 96% due to the pandemic


MALAYSIA Airports Holdings Bhd (MAHB) stated the prolonged Movement Control Order, which significantly reduced passenger movements, caused a net loss of RM91.07 million in its second quarter ended June 30, 2020 (2Q20), against a net profit of RM160.08 million in 2Q19.

The group’s revenue declined 78.4% to RM272.18 million in 2Q20 as passenger movements contracted 96% due to the Covid-19 pandemic.

Prolonged movement restrictions and border closures contracted its airport’s operations revenue by 80% to RM238.7 million while revenue from the aeronautical segment dropped 93.1% to RM45.6 million.

Revenue for the non-aeronautical segment decreased by 63.4% to RM193.1 million and revenue from non-airport operations dropped by 51.5% or RM35.6 million due to lower revenue from the project, and repair maintenance and hotel businesses.

The group’s Malaysia and Turkey operations recorded a drop in revenue by 75.5% to RM221.6 million and 89% to RM35.1 million respectively.

Revenue for Qatar’s operations slipped to RM15.5 million from RM38.7 million a year ago.

In the current quarter under review, passenger traffic for the Malaysia operations contracted 96.9% to 0.8 million passengers compared to 25.8 million passengers recorded in 2Q19.

In Turkey operation, passenger traffic contracted 93.2% to 0.6 million passengers against 8.8 million passengers a year ago.

For the group’s six months’ period, it registered a net loss of RM111.45 million against a net profit of RM309.66 million last year while its revenue declined 52% to RM1.21 billion from RM2.51 billion previously.

“With the combined operating performance of Istanbul Sabiha Gökçen International Airport, the group’s network of airports handled 26.9 million passengers in the first half of 2020 (1H20), 60.6% lower than the traffic recorded in 1H19,” the group said in a statement yesterday.

Traffic for international and domestic passengers contracted by 63.6% and 57.7% respectively, while the group’s aircraft movements dropped by 50.2% where international and domestic aircraft movements registered a decline of 54.7% and 47.2% respectively in 1H20.

For its Malaysia operations, the group expects a recovery in the upcoming months following the easing of restrictions that allow specific international travellers such as medical tourists, expatriates and Malaysia My Second Home pass holders, among others.

MAHB said it has also taken immediate and preemptive measures to mitigate the impact of the pandemic by implementing an aggressive 18-month cost optimisation plan that will keep the group stable.

“MAHB has identified several key areas to improve its cost structure and is on track to reduce its operating cost by 20%.

“These include consolidation of underutilised terminal areas, revision of maintenance schedules and the deferment of non-critical maintenance capital expenditures,” said MAHB CEO Datuk Mohd Shukrie Mohd Salleh.