Malaysia Airports Holdings Bhd went into the red with a net loss of RM91.1 mil in the second quarter ended June 30, 2020 versus a net profit of RM160.01 mil a year ago on the back of the drastic drop in revenue of RM272.18 mil compared with RM1.26 bil.
For the six months just ended, the airport operator posted a net loss of RM111.45 mil from a net profit of RM309.66 mil a year earlier while revenue fell to RM1.21 bil from RM2.51 bil.
Passenger traffic for Malaysia operations declined by 62.4% to 19.2 million passengers in 1H2020. KL International Airport recorded a 63.8% reduction of passenger traffic to 11 million passengers for the same period while other airports in Malaysia recorded an aggregate decline of 60.4% to 8.2 million passengers.
Interstate travel restrictions in Turkey were removed on June 1 followed by the reopening of the country’s borders on June 11, thus allowing Istanbul Sabiha Gökçen International Airport to resume its operations accordingly. The 1H2020 traffic in ISG saw a decline by 54.9% to 7.7 million passengers.
Its group CEO Datuk Mohd Shukrie Mohd Salleh said, “In the wake of Covid-19, the absence of traditional revenue sources presented the need for airports globally to reformulate its strategy and to devise innovative approaches in diversifying revenue streams and trimming down expenses.
“Malaysia Airports 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 as well as the deferment of non-critical maintenance capital expenditures.
“We have also embarked on other opportunistic revenue streams such as our recent Airport Staycation by Sama-Sama Hotel and the recent launch of the KLIA Crazy Sale, both of which are very well received by the public,” he said.