PASSENGER TRAFFIC SEEN GROWING
Mavcom expects 2.9-4.1pc increase to 105.5m and 106.7m this year, supported mainly by local demand
MALAYSIA’S air passenger traffic may rise 2.9 to 4.1 per cent to between 105.5 million and 106.7 million this year, says the Malaysian Aviation Commission (Mavcom).
This comes amid more uncertainty expected ahead as global and local economic growth seen slowing marginally, said Mavcom in its bi-annual industry report released on Tuesday.
It said the forecast would mainly be supported by domestic demand, adding that seats for domestic routes in Malaysia were expected to increase 7.3 per cent year-on-year with those for international markets likely to be minimal at 1.9 per cent
year-on-year.
Mavcom executive chairman Dr Nung-sari Ahmad Radhi said the commission expected to see downward pressure on yields and revenues for Malaysian carriers this year.
“This is because seat-capacity growth may surpass passenger traffic growth. On average, jet fuel prices this year could be lower than last year, which may provide some respite to any financial pressures faced by the carriers,” he said.
Mavcom will monitor domestic demand growth closely in light of the forecast increase in seat capacity as that will have a significant bearing on the financial health of Malaysian carriers.
“International traffic growth also depends on many other factors, but we would like to see better numbers for Asean traffic,” he added.
Mavcom’s fourth edition industry report, Waypoint, provides an overview of the aviation sector, including on industry structure and performance.
Meanwhile, the International Air Transport Association (IATA) has forecast that the number of destinations served by airlines this year to increase further, along with flight frequencies, which will support anticipated global passenger traffic growth by six per cent year-on-year, in terms of revenue passenger kilometres,.
Mavcom, quoting IATA, said the underlying global economic growth and the expectation of lower average fares would support growth forecast for this year.
IATA said the average fares this year were forecast to be 61 per cent lower than in 1998, due to a deteriorating macroeconomic outlook.
The report said Malaysian carriers were expected to increase capacity by two per cent year-onyear in terms of available seat kilometres and 5.7 per cent yearon-year in terms of number of seats.