This notable improvement is due to higher revenue and other income, coupled with the improved share of profit contributions from associate and joint venture companies.
Revenue for the quarter increased to RM1.35 billion from RM1.03 billion, a 31% increase driven by higher passenger volumes from the new airlines’ operations, school holiday break, Chinese New Year festive season, and the implementation of the 30-day visa-free waiver for China and India travellers to Malaysia.
In a Bursa Malaysia filing today, the airport management company stated that it has returned to and sustained its profitability and positive cash flows for the past five quarters, in line with traffic recovery.
In line with the positive traffic outlook and growing demand for air travel, MAHB said it made significant investments to replace ageing assets and modernising the airports it operates.
“The recently signed operating agreements (new OAs) with the government, which extend MAHB’s operating tenure to 2069, also provide a clear investment recovery framework for MAHB.
“Especially to pursue viable airport developments that will be both beneficial to the passengers and the country, as well as provide valuable earning accretion opportunities to the group,” it said.
It said that the expansion of Penang International Airport shall be the first deliverable under the new OAs for which the group has agreed with the government on the recovery mechanism, based upon a pre-agreed rate of return.
The company said that its performance may nevertheless be affected by the availability of aircraft and macroeconomic factors such as global inflation, potential increases in fuel prices, and geopolitical risks.
“We remain steadfast in optimising our costs, with our core cost per passenger expected to further improve, in tandem with passenger growth.
“We also closely monitor the prevailing conflict in West Asia and the possible impact on our operations and costs as airlines reroute flights to avoid specific airspace,” it added.
At the close of trading, MAHB’s share price was up by 5 sen or 0.51% at RM9.93, giving the group a market capitalisation of RM16.57 billion.