MAHB targets cargo volumes to reach 1.4m MT

The airport operator continues to pursue new initiatives in broadening its income base

by FARA AISYAH / pic by RAZAK GHAZALI

MALAYSIA Airports Holdings Bhd (MAHB) targets to double its cargo volumes in the next 10 years.

MAHB group CEO Datuk Mohd Shukrie Mohd Salleh (picture) said the group is committed to making Malaysia a cargo distribution hub within the Asean region.

“With the growth in cargo volumes, we are looking at improved airline connectivity via Kuala Lumpur International Airport with new routes and increase in flight frequencies, belly space utilisation and freighter capacity.

“We hope to double the current cargo volumes to 1.4 million metric tonnes (MT) in the next 10 years,” he said in a statement yesterday.

Earlier this month, MAHB and its partner Cainiao Smart Logistics Network, the logistics arm for Alibaba Group, announced the commencement of operations of the Cainiao Aeropolis eWTP Hub.

The airport operator continues to pursue new initiatives in broadening its income base.

For the third quarter ended Sept 30, 2020 (3Q20), MAHB posted a net loss of RM319.72 million against RM197.87 million net profit a year ago, mainly due to the decrease in revenue by 70.7% year-on-year (YoY).

During the quarter, group cost decreased by 31.9% due to lower operating costs driven by cost-containment initiatives, as well as other costs namely, user fee, depreciation and amortisation recorded during the period.

It recorded a loss per share of 20.14 sen compared to 11.05 sen earnings per share in 3Q19.

MAHB’s quarterly revenue fell 70% YoY to RM396.69 million from RM1.36 billion in 3Q19 in tandem with the significant contraction in passenger movements of 74.8% due to the global impact of Covid-19 pandemic and prolonged Movement Control Order (MCO) period in Malaysia and other countries.

The impact of the prolonged MCO period and border closures resulted in a significant decline in revenue from airport operations by 72.6% to RM350.9 million.

The group’s revenue from the aeronautical segment decreased by 68% to RM228.6 million over the corresponding quarter in the prior year.

Passenger traffic for Malaysian operations contracted by 83.2% (international: -97.8%; domestic: -68.7%) to 4.5 million passengers, compared to 26.8 million passengers recorded in the corresponding quarter in the prior year.

The passenger traffic for its operations in Turkey also contracted by 52.5% (international: -73.8%; domestic: -37.3%) to 4.8 million passengers compared to 10.1 million passengers recorded in the corresponding quarter in the prior year.

The non-aeronautical segment decreased by 78.3% to RM122.3 million compared to the corresponding quarter in the prior year.

For the cumulative nine-month period, MAHB posted a net loss of RM431.17 million against RM507.53 net profit in the same period last year.

Revenue during the January to September 2019 period declined 58.66% YoY to RM1.6 billion from RM3.87 billion in 9M19.


Read our earlier report

 

MAHB’s 3Q20 earnings contract on lower passenger movement