Malaysia

HK Express Airways will launch a daily direct flight from Hong Kong to Kuala Lumpur’s Subang Airport

AirAsia is looking to order at least 100 Airbus A220 jets during the Paris Airshow. AirAsia said they were looking to introduce smaller planes to serve regional routes. AirAsia is also in talks with Embraer to add E2 aircraft to its fleet

Capital A CEO said they only have 15%-20% of the process left in their regularisation plan to exit Practice Note 17 (PN17), which is expected to be completed by the end of Jul. The proposed disposal of its 100% stake in AirAsia Aviation Group Ltd (AAAGL) and AirAsia Bhd (AAB) to AirAsia X Bhd (AAX) is part of the final step. He said they need to get approval from the Thai Stock Exchange (SET) for the disposal, and they have a backup plan if they don’t get the approval. They also need to get 5 consent letters from the creditors, and 4 creditors have given their letters. Capital A has also received RM1 billion of equity. After exiting PN17 status, Capital A plans to get listed on the Hong Kong Stock Exchange (HKEX) and on the Nasdaq through its brand management arm, ABC International

Saudia Group’s low-cost subsidiary, flyadeal, plans to expand to Malaysia, the Philippines, Indonesia, and Thailand markets with the deliveries of 10 A330neos scheduled from 2027. The airline operates 38 aircraft and plans to expand to over 98 in the next 4 years

Malaysia Airlines increased flight frequency between Thiruvananthapuram and Kuala Lumpur with an additional 1 service per week, bringing it to a total of 5 weekly

The Transport Minister said the media will be invited for a test run on the KLIA aerotrain next week

Hainan Airlines launched direct flights from Haikou, China, to Kuala Lumpur from 30 May with 4 flights per week

Ascend Airways Malaysia, a new airline subsidiary of Avia Solutions Group, has progressed to phase 3 of the Air Operator Certificate (AOC) application process and is targeting to launch cargo operations in Nov 2025. The airlines secured a Conditional Air Service Permit from the Malaysian Aviation Commission (MAVCOM) and started the process to obtain an AOC from the Civil Aviation Authority of Malaysia (CAAM). The airline said it will offer both passenger and cargo operations. The airlines will receive its first Boeing 737-800 freighter in Q3 2025

AirAsia launched a new daily 5th-freedom flight from Kota Kinabalu to Fukuoka, Japan via Taipei from 15 Aug. AirAsia has carried 130,000 passengers in the Kota Kinabalu-Taipei route over the past 3 years of operating it

AirAsia will collaborate with Sabah’s higher education institutes to train pilots, engineers, and flight technicians. AirAsia Group CEO said this is part of their initiative to develop local human capital, especially focusing on B40 youths. The airline will begin a pilot training program before the end of 2025. He added that the program will cover other areas like engineering, technical roles, and artificial intelligence (AI). AirAsia will use AI for network scheduling, fuel saving, and luggage management

The International Air Transport Association (IATA) expects global airlines to post $36 billion USD in 2025, a drop from the initial forecast of $36.6 billion USD made in Dec 2024 before the US president took office. Airlines recorded $32.4 billion USD in profits in 2024, backed by lower oil prices and record passenger numbers. IATA’s new forecast shows that airlines will record $979 billion USD in revenue, a new all-time record. The US-imposed tariffs and delays in aircraft delivery have caused operating costs to increase. Airlines are facing difficulties in meeting travel demand in certain regions. Airlines are expected to record $913 billion USD in expenses in 2025, +1% YoY, while cargo revenue is expected to drop by 4.7% to $142 billion USD in 2025

Malaysia is planning to partner with Royal Brunei Airlines to adopt a “Brunei+” model to target the UAE market, including an overnight in Brunei before continuing onto Kota Kinabalu or Kuala Lumpur. It will be aimed at Indian expats living in the UAE with a 7D6N itinerary, with the aim to attract 1 million of those to visit. Tourism Malaysia plans to offer 30 fam trip slots to Royal Brunei Airlines in Sep/ Oct. They have also asked Royal Brunei Airlines to expand their network’s connecting routes with more flights to Peninsular Malaysia

The AirAsia X inaugural flight Kuala Lumpur-Karachi recorded 95% load factor on the outbound leg and 80% load factor on return flights. Passengers are expected to reach 100,000 annually on this route

Tourism Malaysia’s Deputy Chairman said they are in talks with Loong Air to resume Penang-Xi’an direct flight by Jun. The exact date is yet to be confirmed. Loong Air plans to launch a direct Kuala Lumpur-Xi’an route with 3 weekly flights from Jun

AirAsia X and Capital A have extended their restructuring deal by 2 months to 31 Jul, from 31 May, to allow time to finalise the terms of the RM1 billion private placement, as well as seek regulatory and lender approvals

Capital A reported its Q1 2025 results: Total revenue of RM4.9 billion, flat YoY and slightly higher QoQ EBITDA margin at 20% YoY due to 11% drop in fuel expenses Net operating profit at RM241 million Fleet size up by 1 plane, to 225, with 207 active Pax carried 16.2 million, +5% YoY Average fare RM241, -9% YoY Ancillary per pax RM60, +5% YoY and QoQ, ancillary revenue +10%, making up 20% of aviation revenue The Group CEO anticipates “stronger momentum” in H2, driven by seasonal demand, stronger Asian currencies and a more favourable fuel environment. They plan to reactivate 20 planes and add 2 new aircraft, and are undertaking “demand-led network optimisation". It noted that the focus for AirAsia Philippines is cost containment, to return it to profitability, whilst Malaysia and Thailand will focus on boosting the domestic market through targeted pricing AirAsia MOVE saw -9% decrease in Gross Booking Value due to “continued pricing variances on AirAsia flights”, with a -6% YoY revenue. However, EBITDA increased by 10% YoY due to cost optimization projects, and AI-led marketing personalisation seeing a better RoS. Non-AirAsia revenue reached a record high of 28% share Tony Fernandes commented that Capital A is "actively exploring” a dual listing on the Hong Kong Stock Exchange, and that the company is on track to reach realistic internal targets for 2025

Malaysia Airports Holdings Bhd (MAHB) recorded 93.8 million passengers through its 39 airports in 2024, +14.5% YoY and is on track to surpass pre-pandemic levels of 105.2 million passengers in 2025. MAHB recorded RM606.16 million net profit from Jan-Sep 2024, 2X YoY with RM255.47 million in 2023

AirAsia X reported RM50.2 million net profit, -37.34% YoY and RM940.1 million revenue, +3% YoY for Q1 2025: Seat capacity reached 1.29 million seats, +12% YoY Airlines carried 1.08 million passengers, +12% YoY Passenger Load Factor (PLF): 83% Average base fare: RM550 Ancillary revenue per passenger: RM277, +10% YoY Total ancillary revenue: RM298.3 million, +24% YoY Available Seat Kilometres (ASK): 5,878 million, +17% YoY The airline has 18 of its 19 aircraft fleet operational, with the 19th set to be reactivated mid-year It noted that the suspension of the Kuala Lumpur-Nairobi route’s “initial assumption for premises of financial support did not materialise eventually” Fly-Thru connectivity is reported to be consistently around 20% of total traffic, with high performing routes from Korea, Japan and Kazakhstan Japan and Australia become core routes with 85% and 90% load factors respectively Overall, the airline noted that it was “mindful of the softer travel season in the second and third quarters, but are encouraged by the forward sales momentum”

Total passenger movements in Malaysian airports managed by Malaysia Airports reached 8.3 million in Apr 2025, +15.6% YoY. Domestic travel reached 4.2 million passengers, +25.2% YoY driven by festive season and school holidays travel

China Eastern Airlines launched a direct flight between Lanzhou, Gansu Province, China to Kuala Lumpur, with 3 flights per week

Batik Air will offer daily flights to Don Mueang International Airport, Bangkok, from Subang Airport from 28 Jul, calling it “just the beginning” of international Subang routes. Batik Air will launch daily flights to Kuching on the same day as part of the airline’s commitment to transform Subang Airport into a vibrant city airport hub

Sarawak Transport Minister said the state has awarded a site verification and feasibility study for the proposed new Kuching International Airport (KIA) to Naco Netherlands Airport Consultants in partnership with Jurutera Jasa (Sarawak) Sdn Bhd. He added that once the consultant completes the study, Sarawak will come up with a more realistic estimate of the project. The upcoming 13th Malaysia Plan will include a comprehensive aerotropolis masterplan and detailed design of the new airport

Malaysia Airlines and Google will improve their commercial partnership to integrate AI in marketing and end-to-end digital innovation in the airline’s ecosystem. Malaysia Airlines will leverage Google’s Performance Max and AI-enhanced tools to drive its marketing and launch targeted YouTube campaigns in the UK, Australia, New Zealand, Japan, and important ASEAN markets to grow international brand affinity. Malaysia Airlines, through the first-party data activation, will drive its loyalty program with Enrich and premium cabin offerings

The Langkawi International Maritime and Aerospace Exhibition 2025 (LIMA’25) saw 450,000 visitors over 5 days, with 1,400 B2B meetings and 920 B2G sessions

A report that AirAsia will retrench 20% of its current workforce has been labelled by AirAsia as “misleading and irresponsible”, saying that they are reviewing their legal options

Deputy Prime Minister said 103 new flight routes, 29 increased flight frequencies, and 5 chartered flights have been approved as part of preparation for Visit Malaysia 2026 (VM2026). He added that this was discussed during the Cabinet Committee on Tourism and Culture (JKPK) meeting. In conjunction with VM2026, 7 iconic programs such as Malaysia Mega Sale, Malaysia Cultural Festival, Global Meet, World Tourism Day & Conference, Official Launch of VM2026, VM2026 Year-End Sale, and the VM2026 Countdown Celebration will be organised. To make Malaysia into a world-class sustainable tourism destination, Kuala Lumpur City Hall and the Selangor Government will launch the Greening Protocol, which includes low-carbon technology, green mobility, and the empowerment of urban green spaces

AirAsia will provide a charter service, including special aircraft leasing with the Malaysian Armed Forces (ATM) until Aug 2027. The contract will cover daily charters and special charter arrangements at a value of RM99.5 million

Sarawak will finalise the full acquisition of MASwings Sdn Bhd by the end of 2025. Sarawak Deputy Minister for Transport said AirBorneo Holdings Sdn Bhd and Malaysia Aviation Group (MAG) are working to fulfil the conditions before completing the transaction. The Sale and Purchase Agreement (SPA) was signed in Feb 2025. They need to secure approvals from the Civil Aviation Authority of Malaysia (CAAM), the Malaysian Aviation Commission (MAVCOM), the International Civil Aviation Organisation (ICAO) and the International Air Transport Association (IATA). Further process involves the transfer of operating assets from MAG to AirBorneo and preparing for a seamless operational transition. MASwings’ workforce will be retained after the completion of the transactions. RAS agreement signed between the federal government and MASwings Dec 2024 will remain in force until 31 Dec 2025. A new agreement will be signed between the federal government and AirBorneo to continue subsidies RAS. RAS network which serves the remote and underserved areas in Sarawak and Sabah will be maintained at its current schedule, frequency and coverage

Malaysia Airlines is operating 76 weekly flights across 10 cities in India, with passenger traffic recording +30% vs pre-pandemic levels. The airline is targeting 1.3 million passengers, +14% YoY in 2026. The load factor is at 88% in metro cities and 86% in tier-two markets

The Prime Minister said the Langkawi International Maritime and Aerospace Exhibition 2025 (LIMA’25) reflects Malaysia’s commitment to defence preparedness, regional peace, and strategic collaboration following the evolving global security challenges. He welcomed the participation of global powers, including China, India, Korea, the US, and European countries in LIMA’25. The event features 860 exhibitors. The Defence Ministry and Global Exhibitions and Conferences Sdn Bhd (GEC) co-organise LIMA’25 under the theme of “Today’s Innovation, Tomorrow’s Achievements”, and the event will run from 20-24 May

The 17th Langkawi International Maritime and Aerospace Exhibition 2025 (LIMA'25) will feature 600 exhibitors from 25 countries

The Home Ministry signed 4 contracts worth RM1.469 billion at the Langkawi International Maritime and Aerospace Exhibition 2025 (LIMA'25)

Penang Infrastructure EXCO said that Phase 1 of the Penang International Airport (PIA) expansion project is 38% complete and all works are expected to be completed by the end of 2025. The new PIA terminal is expected to be operational by 2027, and full completion is expected to be completed in 2028

Malaysia Airlines launched the “Time For” campaign from 7-20 May 2025 for a travel period from Jun 2025 to Mar 2026 with promotional domestic and international fares

Ground Team Red Sdn Bhd (GTR) launched Private Jet Handling service at the Langkawi International Maritime and Aerospace Exhibition (LIMA) 2025. GTR signed an MoU with Weststar Aviation Services and Sapura Aero Handlers for this initiative

Airbus launched a new regional office in Putrajaya. The office will house around 170 employees. Malaysia operates 150 Airbus commercial aircraft, with 400 more on order

AirAsia Move CEO said the rebrand as “Move” is expected to be completed within the next 2 years

Civil Aviation Authority of Malaysia (CAAM) CEO said there won’t be any no-fly zones for aircraft above the location of the ASEAN Summit at the Kuala Lumpur Convention Centre (KLCC) on 26-27 May. He said drones are allowed to be used in the KLCC vicinity during the summit. CAAM will work closely with the Police and Air Force to ensure public safety and security

Russian Deputy Transport Minister said a Russian airline expressed interest in launching direct flights from Russia to Malaysia