PETALING JAYA: The Malaysian Aviation Commission (Mavcom) reported strong growth of 123.6% year-on-year (y-o-y) in air passenger traffic, translating to 19.4 million passengers for the first quarter of 2023 (Q1’23).
Following the full reopening of international borders, international passenger traffic has grown at an average of 80.9% quarter-on-quarter (q-o-q). The number of approved international Air Traffic Rights also demonstrated a notable y-o-y increase of 246.1%, underscoring the steady revival of the international market. Total passenger traffic stood at 73% of the 2019 level.
This was highlighted in the 14th edition of the biannual industry report, Waypoint, which underscores a vibrant recovery in the Malaysian aviation sector in Q1’23.
Mavcom is maintaining its air passenger traffic forecast of December 2022. The commission expects air passenger traffic to rise between 40% and 52% y-o-y in 2023, reaching between 74.6 million and 80.8 million passengers.
The first quarter of 2023 saw a decline in cargo performance. Total freight tonne kilometre fell by 11% y-o-y to 4,666 million, marking the second declining quarter in a row. This reduction is in line with Malaysia’s trading performance during the quarter, due to several factors, including a slowdown in the global economy, a continued shift in consumer spending from products to services, and a downcycle in the electrical and electronics industry.
Air cargo traffic is forecast to grow between 3% and 4.8% y-o-y in 2023. Given the challenging cargo performance in Q1’23, Mavcom predicts 2023 cargo traffic to hover near the lower end of the forecast, suggesting much slower growth.
Waypoint notes that the revenue per available seat kilometre-cost per available seat kilometre spread stabilised to 1.6 sen in the fourth quarter of 2022.
Mavcom executive chairman Datuk Seri Saripuddin Kasim said, “Despite the downturn in cargo traffic in Q1’23, the remarkable surge in passenger traffic paints a compelling picture of the resilience inherent in our aviation industry. This remarkable performance not only demonstrates our ability to rebound but also provides a solid foundation for continued growth in the sector throughout 2023.”
Reflecting a vibrant recovery in the aviation industry, Malaysia’s air connectivity ranking improved to fifth in Asean, overtaking the Philippines, with a connectivity score of 61 in 2022. This improvement can be attributed to the higher deployment of international seats to destinations with a higher weightage following the lifting of border restrictions in the third quarter of 2022. Kuala Lumpur International Airport (Terminal 1 and Terminal 2 combined) maintained its position as the fourth-most connected airport in Asean.
“The commission looks forward to continue supporting the industry and its players, particularly through our various industry-focused initiatives, such as the Waypoint report. It will continue to be a crucial tool for stakeholders in the Malaysian aviation industry, not only in guiding informed decision-making but also in fostering a resilient and consumer-oriented aviation sector, key to the nation’s wider economic growth,” said Saripuddin.
