MAHB posts net loss of RM1.11 bln in FY20

KUALA LUMPUR: Malaysia Airports Holdings Bhd’s (MAHB) posted a net loss of RM1.11 billion in the financial year ended Dec 31, 2020 (FY20) from a net profit of RM537.04 million in the previous year.

Revenue fell to RM1.87 billion in FY20 against RM5.21 billion registered previously due to the Covid-19 pandemic’s global impact and the prolonged movement restrictions in Malaysia and other countries.

In a filing with Bursa Malaysia, the airport operator said its revenue from its airport operations declined by 83.2 per cent year-on-year (y-o-y) to RM215.2 million in the fourth quarter of 2020 (4Q20), while revenue from its aeronautical segment decreased by 85.2 per cent y-o-y to RM109.7 million.

Meanwhile, its nonaeronautical segment’s revenue decreased by 80.6 per cent yo-y to RM105.5 million, largely due to a rental rebate as part of an assistance programme to tenants and airlines.

Revenue from non-airport operations decreased by 20.8 per cent y-o-y or RM12.7 million due to lower revenue from the hotel business, it said.

MAHB also said that passenger traffic for the operations in Malaysia contracted by 92.3 per cent y-o-y to 2.1 million passengers, while passenger traffic for the operations in Turkey contracted by 47.2 per cent y-o-y to 4.7 million passengers.

In a separate statement, MAHB group chief executive officer, Datuk Mohd Shukrie Mohd Salleh said the company had maintained its operational excellence throughout last year, despite implementing extensive cost containment measures.

“Throughout the year, the group aggressively reduced expenses and attained a 36.3 per cent reduction in total costs which translated into RM1.15 billion worth of savings, surpassing the 20.0 per cent target,” he said.

Mohd Shukrie said the distribution of vaccines across the globe since December last year offers a ray of hope for an upturn in the air travel industry.

Malaysia and Turkey have initiated the first phase of vaccinations this month and in January, respectively.

“Other positive efforts have also been initiated, including the Reciprocal Green Lane/Travel Corridor Arrangement between Malaysia and Indonesia, as well as the Safe Tourism Certificate programme by the Turkish government.

“In tandem with the group’s focus in ensuring operational excellence and continued safety, these will have a positive impact on the travel industry and contribute to a gradual recovery,” he said.