KUALA LUMPUR, May 30 — Malaysia Airports Holdings Bhd’s (MAHB) net profit for the first quarter ended March 31, 2024 (1Q 2024), increased to RM189.99 million from RM58.19 million in the same period last year, a rise of 226 per cent.

This notable improvement is due to higher revenue and other income, coupled with 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 per cent increase driven by higher passenger volumes from the new airlines operations, school holiday break, Chinese New Year festive season and the implementation of 30-day visa-free waiver for China and India travellers to Malaysia.

The airport management company said in a Bursa Malaysia filing today that it has returned to and sustained its profitability and positive cashflows for the past 5 quarters, in line with traffic recovery.

"In line with the positive traffic outlook and growing demand for air travel, MAHB has put in important and significant investments to replace ageing assets and modernise 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 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 deliverables 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 their performance may nevertheless be affected by the availability of aircraft and macroeconomic factors such as global inflation and potential increase in fuel prices as well as 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. — Bernama