MAHB reports Q2 net loss of RM91.07 million on lower revenue

PETALING JAYA: Malaysia Airports Holdings Bhd (MAHB) saw a net loss of RM91.07 million in the second quarter ended June 30, compared with a net profit of RM160.08 million a year ago, mainly due to the significant decrease in revenue.

The group’s revenue for the current quarter declined by 78.4% to RM272.18 million from RM1.26 billion in Q2’19, in tandem with the significant contraction in passenger movements of 96% due to the global impact of Covid-19 pandemic and prolonged movement control order (MCO) period in Malaysia and other countries.

For the half year period, MAHB posted a net loss of RM111.46 million compared with a net profit of RM309.67 million last year mainly due to significant contraction in passengers traffic by 60.5%.

The group recorded revenue of RM1.21 billion, 52% lower than revenue of RM2.51 billion recorded in the corresponding period in the prior year.

MAHB’s network of airports recorded 26.9 million passengers in the current period under review from Jan 1, 2020 to June 30, 2020, a contraction of 60.5% over the corresponding period in the prior year.

During the same period, the group’s traffic for international and domestic passengers contracted by 63.6% and 57.7% respectively. Correspondingly, the group’s aircraft movements decreased by 50.2% with both international and domestic aircraft movements decreasing by 54.7% and 47.2% respectively.

Resumption of international traffic is expected to be gradual mostly due to dependence on travel bubbles arrangements and a slower easing of border restriction as countries remain cautious and this is estimated to reflect a better traffic in the coming months.

“With the aviation industry affected by the unprecedented travel restrictions and bans, MAHB had taken immediate and pre-emptive measures to mitigate its impact by implementing an aggressive cost optimisation plan which will keep the group relatively stable.

“The 18-month plan involves recalibrating operational efficiencies, which are rebasing cost and prioritising capital expenditure to conserve cash reserves and ensure that the group is able to meet its financial and operational obligations. The group had also started to pare down non-essential operating costs with the aim of lowering it by at least 20%,“ MAHB said.

source https://www.thesundaily.my/business/mahb-reports-q2-net-loss-of-rm9107-million-on-lower-revenue-MC3703709