Malaysia

Capital A has said that they are in “active discussions” to buy COMAC C919 planes. They did not disclose order size, or other details

Petronas delivered the first locally-blended sustainable aviation fuel (SAF) for the Malaysia Aviation Group at Kuala Lumpur International Airport (KLIA). Petronas said they will supply SAF to Malaysia Airlines for its London-bound flights until 16 Sep. Under the 2023 National Energy Transition Roadmap, Malaysia is targeting a 47% SAF blending mandate by 2050. In Aug, the government announced that it will introduce 1% SAF blending mandate for international-bound flights from KLIA starting Jan 2027

The Ministry of Investment, Trade and Industry is expecting the aerospace industry’s revenue to reach RM30 billion in 2025, vs RM25.1 billion in 2024. 2024's revenue was the highest in the past 10 years, and it supported 30,000 skilled workers in the aerospace industry. Airbus and Boeing have increased their presence in Malaysia including in CTRM’s (Composites Technology Research Malaysia) in composite manufacturing, supplying important components to global original equipment manufacturers. MyAERO Summit will take place in Jun 2026 to facilitate engagement with SMEs and the general public

Asia Digital Engineering Sdn Bhd (ADE) will double its MRO hangar lines to 40 within the next 3-5 years. ADE CEO said they are operating 16 hangar lines and plan to add 4 by 2027, with construction starting by the end of 2025. He added that 90% of ADE’s revenue is from AirAsia, and only 10% is from non-AirAsia clients. ADE is currently managing 70% of AirAsia’s of AirAsia’s fleet, and aiming to achieve 100% in the next 2 years when the total fleet size is expected to reach 300 from 250 in the next 5 years. ADE will offer heavy maintenance and aircraft modification services to Air France, whilst Air France Industries KLM Engineering & Maintenance will offer service to AirAsia’s A321neo fleet

OAG Aviation’s data shows that in Aug 2025: Changi Airport recorded 3.58 million departing seats, taking the top spot in Southeast Asia Kuala Lumpur International Airport handled 3.32 million departing seats, and became the second busiest airport in Southeast Asia, from 4th place 6 months ago Jakarta Soekarno-Hatta International Airport, 3.25 million Bangkok Suvarnabhumi International Airport, 3.22 million Manila Ninoy Aquino International Airport, 2.77 million KLIA recorded +7.5% YoY in departing seats in Aug 2025, making it the 4th airport for growth in ASEAN. Malaysia Airports Holdings Bhd Managing Director said the total operating airlines at KLIA has increased from 59 to 66. MAHB will strengthen its emergency preparedness at its airport network through ensuring all members and the office of the Airport Fire and Rescue Service (AFRS) comply with the Civil Aviation (Aerodrome Operations) Regulations 2016

Malaysia Airports Holdings Bhd (MAHB) recorded 60 million passengers from Jan-Jul 2025 across all airports it manages in Malaysia

AirAsia will resume flights from Jenderal Ahmad Yani Airport, Semarang, Central Java, to Kuala Lumpur on 5 Sep

Malaysia Airlines Bhd has been granted its 3-year air operator certificate from the Civil Aviation Authority of Malaysia (CAAM), after previously only being granted one year in Aug 2024. MAB noted a “lot of improvements” over the past year, including for safety

Malaysia Aviation Group announced that it is aiming for a fleet of 116 aircraft serving 106 destinations worldwide by 2035, with the average fleet age of 7 years, down from the current 12 years. It currently has 86 aircraft and will operate 310 flights per day by the year-end. It will open new routes to Chengdu from Jan 2026 for which it is currently seeing a load factor of 90%, and Firefly will start to fly to Siem Reap, Cebu and Krabi by Nov 2025. The airline noted that it does not plan to resume flights to North America in the next 5 years, but that it has “huge ambitions”

The Sarawak Tourism Board (STB) announced Malaysia Airlines added Kuching under its Bonus Side Trip (BST) program. Kuching will be the 8th destination under the BST program, and will be the only destination in East Malaysia

Malaysia Airports Holdings Bhd (MAHB) reported that the technical fault on the KLIA Aerotrain was due to a dislodged current collector device, and that they were “disappointed”, especially as it had just undergone a 2-week maintenance period. They noted that the number of pax transported has increased to 1.7 million in Aug 2025, from Jul’s 1.4 million

Trip.com and Malaysia Airlines are collaborating to offer holiday packages for MATTA Fair from 5-7 Sep, Trip.com’s “9.9 Mega Sale”, and Malaysia Airlines’ “Online Travel Fair”

Malaysia Airport Holdings Bhd has been instructed to check all electric infrastructure at Kuala Lumpur International Airport (KLIA), after preliminary results showed that the power outage at KLIA 2 was down to wiring that caught on fire due to overheating. It took 28 minutes for the airport to restore the electricity supply, which the Transport Minister said was “too long and too hard to accept”

The Transport Ministry said the Kedah Aerotropolis project proposal by KXP AirportCity Holdings Sdn Bhd will be considered only after technical, safety, and financial concerns are resolved. The Ministry said the Air Force raised concerns over possible disruption of existing air traffic management and operations of Air Force bases. The Malaysian Aviation Commission (MAVCOM) raised concerns over the project’s financial sustainability and found the project’s cargo projections are unrealistic. MAVCOM also found the developer does not have documentation to prove it could secure the RM5.67 billion needed for the project’s Phase 1

Capital A is targeting to divest its aviation business on 11 Nov, noting that it is now working with the Thai Securities and Exchange Commission, whose approval they hope to obtain by mid-Sep

Capital A reported its Q2 2025 results, with revenue of RM4.8 billion and net operating profit of RM671 million, whilst its profit after tax was RM1.5 billion, up from Q2 2024’s RM543 million loss, thanks to a RM0.9 billion foreign exchange gain: AirAsia Group’s aviation revenue was down -3% YoY to RM4.5 billion, which it attributed to Thailand’s weaker tourism climate. Without Thailand, revenue would have increased 2% YoY. Its profit after tax increased to RM884 million vs -RM552 million in Q2 2024. Load factor was 82% with 8% capacity added, passenger capacity decreased 1% YoY due to Thailand. Average fare declined 4% YoY to RM229, and a change of more domestic capacity. Ancillary per passenger increased 2% YoY, and ancillary revenue increased 3% YoY, driven by better cargo revenue and data personalisation. CASK fell 8% YoY. The Group CEO is confident that there will be momentum into H2 2025, and for Thailand they plan to move capacity to domestic and Indian routes, with recovery anticipated from Q4 2025 AirAsia MOVE saw revenue down 16% YoY, with the share of AirAsia seats at 43%. Bookings for Stays increased 38% YoY. Overall transactions were down 25% YoY, whilst gross booking value declined 0.4% YoY. AirAsia MOVE CEO noted that users (+6% YoY), hotels and ancillary revenue grew despite a difficult environment for flight transactions. They aim to grow AirAsia seats sold share to 50% by the year-end

Ascend Airways Malaysia is hoping to launch operations in mid-Nov 2025, as it moves into advanced stages of its Air Operator Certificate (AOC). It will have its first B737-800 freighter in Q3, and will have 2 B737-800s by end 2025 and early 2026. It will offer wet leasing solutions and is backed by Avia Solutions Group

The Transport Minister called the power blackout in Kuala Lumpur International Airport (KLIA) Terminal 2 unacceptable. The outage lasted 20 minutes, and any outage more than 15 minutes is considered a major disruption. He said that many electrical systems weren’t working, and the terminal went dark. He also questioned why the backup system had not been activated. He asked Malaysia Airports Holdings and gateway@klia2 to submit a full report within 24 hours

Jiangxi Air launched a direct flight between Nanchang and Kuala Lumpur on 25 Aug, connecting Nanchang for the first time. The airline will offer 2 flights per week

Malaysia Airlines has become the first airline in Southeast Asia to implement the Amadeus Travel Ready solution to implement digital and biometric verification for air travel. The system will allow passengers to upload and verify important travel documents such as passports, visas, and health certificates during online and mobile check-in. Chief Digital Officer of Malaysia Aviation Group said, “We are laying the foundation for a fully biometric, seamless journey in the future”

Batik Air to launch a direct flight service from Kuala Lumpur International Airport (KLIA) to Osaka Kansai International Airport (KIX), from 15 Dec

AirAsia obtained permission from the High Court to challenge the Malaysia Aviation Commission’s (MAVCOM) decision to impose an RM80,000 penalty on AirAsia for its Feb 2025 free seat promotions. MAVCOM claimed AirAsia has violated the Malaysian Aviation Consumer Protection Code 2016 (MACPC). AirAsia asked the court to declare that MAVCOM’s "Guidance on Advertisement of Air Fare" was issued without a legal basis. AirAsia said they have been running this campaign for the past 19 years without any issues. AirAsia argues that the Feb 2025 advertisement clearly differentiated between “free seats” and “total airfare”

The Transport Minister said local airlines will be prioritised for vacant slots at Subang Airport. This is to protect Kuala Lumpur International Airport’s regional airport status. He said many airlines which received slots at Subang Airport have pulled out due to a lack of viability. He added that Subang has not been expanded to support a larger scale of operation. More slots can be allocated once the plan under the Subang Airport Regeneration Plan (SARP) to build a new terminal with a capacity of 8 million passengers per year is completed. Currently, the airport does not have enough bays to accommodate many aircraft as flight operations are limited to only one per hour

The Transport Minister announced an inter-terminal transfer (ITT) system between Terminal 1 (T1) and Terminal 2 (T2) of Kuala Lumpur International Airport (KLIA) will be implemented by mid-2026. He said Malaysian Airport Holdings Berhad (MAHB) is developing this system to help facilitate seamless passenger and baggage transit and improve operational efficiency across both terminals. The Ministry wants to integrate the airside shuttle bus system. The Minister added that 6-8 months are needed to consider the integration of immigration and customs. The National Aviation Consultative Council (NAAC) will reconsider the ‘Green Lane’ system to resolve international arrival congestion at T1 and T2 during the customs check, and a task force will monitor the ongoing progress of the Baggage Handling System by MAHB. The NACC discussed improving slot allocations and management of the Subang Airport

AirAsia X posted its financial report for Q2 2025: Average passenger fare dropped to RM145, -26% QoQ due to off-season travel Ancillary revenue per passenger reached RM660.80, -30% QoQ The airline carried 935,105 passengers vs 1.08 million in Q1 2025 Profit reached RM35.22 million, -29.8% QoQ, despite lower operating costs due to the strengthening of the ringgit against the USD Fuel price dropped to $86 USD per barrel vs $99 USD in Q1 2025 On a YoY basis, the revenue dropped by 1% but the profit recorded 7X The cost per available-seat-kilometre (CASK) dropped to 12.05 sen, -13% YoY CASK excluding fuel recorded at 6.38 sen, +9% YoY Available-seat-kilometre reached 4.8 billion, +10% YoY Passenger load factor (PLF) to Japan, China, and South Korea recorded above 85%

AirAsia X (AAX) posted: RM35.22 million in net profit for Q2 2025, vs RM4.82 million in Q2 2024 RM660.80 million of revenue in Q2 2025 vs RM669.14 million in 2024 RM85.43 million net profit and RM1.6 billion in revenue in H1 2025 vs RM84.94 million net profit and RM1.58 billion revenue in H1 2024 AAX operates 18 aircraft and is waiting for the reactivation of 1 aircraft, which is expected in H2 2025, due to an aircraft engine shortage AAX recorded 935,218 passengers on 1.21 million seats in Q2 2025, reaching 83% load factor in both Q2 2025 and H1 2025

The Langkawi Development Authority (LADA) signed an MoU with the Malaysia Aviation Group (MAG) to boost domestic tourism in Langkawi during the off-season. The Langkawi Special Deals Campaign will run from Oct-Dec 2025, with exclusive discounts of up to 70% on selected products and services. MHholidays will offer flight and hotel promotions with savings of up to RM400, and Journify will offer an additional RM30 rebate on Langkawi tours and attractions

The Transport Ministry asked Malaysia Airports Holdings Bhd (MAHB) to carry out maintenance and monitor Kuala Lumpur International Airport’s Aerotrain service to avoid any technical disruptions which can affect passenger movement. The Transport Minister said nearly 2 million passengers have used the Aerotrain since the service restarted on 1 Jul. MAHB said the project contractor has the full responsibility for any issues as the system is still under warranty

AirBorneo will convert one of its ATR-72 turboprop aircraft into a cargo carrier to export food and agricultural products from Sarawak to Singapore. AirBorneo will receive 8 ATR 72-500 aircraft as part of the MASwings takeover deals

Indonesian Consul Representative in Tawau said the international airport status of Juwata Tarakan Airport has opened an opportunity to resume air connectivity between Tawau, Tarakan, and Balikpapan. He expressed hope that this route could be operational by 2026. He suggested MASwings could relaunch the Tawau-Tarakan route service. He added Indonesia has completed its side work on the road infrastructure project in the Serundong-Simanggaris border, and they are waiting for the Malaysian side of the work to be completed

Sultan Haji Ahmad Shah Airport, Kuantan will remain closed until 1PM on 22 Aug following a Royal Malaysian Air Force (RMAF) fighter jet accident on 21 Aug. The closure will affect 2 Malaysia Airlines and 2 Scoot Airlines flights

The Transport Minister said that despite FireFly and AirAsia relocating their jet services to Kuala Lumpur International Airport (KLIA) from Subang Airport, there are some airlines making enquiries to set up flight operations at Subang Airport. He added that the ministry will give space to Malaysia Airport Holdings Bhd (MAHB) to focus on KLIA as a priority after its privatisation, and the Business Aviation and MRO plans at Subang Airport will continue to be developed. The Subang Airport Regeneration Plan (SARP) is expected to be completed in 2030 at a cost of RM3.7 billion. The minister is confident with Subang Airport’s potential as a Premium Airport and Private Jet Hub

Langkawi received 2 charter flights from Hong Kong operated by Greater Bay Airlines on 18 and 22 Aug. The first flight brought 165 tourists from Hong Kong to Langkawi

Firefly launched a daily flight to Tawau from Kuala Lumpur International Airport, after relocating its jet operations from Subang Airport

Sarawak Premier launched AirBorneo’s new official logo, the “Wings of Unity”, as the airline is preparing to begin its operation in Jan 2026. The tagline of the airline is “Borneo for You”. He said AirBorneo will play an important role in Sarawak’s Post-Covid-19 Development Strategy (PCDS 2030), by improving ASEAN air links, job creation, supporting SMEs, improving infrastructure, and contributing to the state’s economic growth

During the second Russian-Malaysian Working Group on Tourism meeting in Putrajaya, both parties discussed launching direct flights connecting both countries and easing the visa process for Malaysians. In 2024, 113,000 Russians visited Malaysia, +40% YoY

Kuala Lumpur International Airport (KLIA) recorded 3.9 million passengers in Jul 2025, +10.3% YoY vs 3.6 million in Jun. Network expansion initiatives, including the launch of Loong Air’s Kuala Lumpur and Xi’an 3X weekly flight service, helped with the airport’s growth. KLIA currently hosts Chinese airlines such as China Southern Airlines, China Eastern Airlines, Xiamen Airlines, and Air China, serving cities such as Guangzhou, Shanghai, Xiamen, and Beijing. Malaysian airports under MAHB recorded 8.9 million passenger movements in Jul 2025, including 4.6 million international and 4.3 million domestic passengers

During an engagement session with Malaysia Airlines Group at the Hilton Hotel Kota Kinabalu on 19 Aug, the Sabah-China Chamber of Commerce (SCCC) asked for more direct flights connecting Sabah with China and ASEAN destinations to boost international connectivity, tourism, and investment in Sabah. SCCC President said Sabah’s tourism industry has surpassed pre-pandemic recovery levels and it will increase further

A Member of Parliament from Sarawak asked the Sarawak government to focus on expanding Kuching International Airport (KIA) instead of planning for a new airport. He added that the Transport Minister answered in parliament that KIA will receive RM100 million allocation under the 13th Malaysia Plan (13MP). The upgrades under the 13MP will increase KIA’s capacity by 60% from 5 million passengers per annum (MPPA) to 8 MPPA. The Minister stated the final approval for the funding will be based on the Sarawak Government’s direction, which is currently undertaking a feasibility study for a new KIA at Tanjung Embang. The new airport is estimated to cost RM10 billion

Sultan Abdul Halim Airport in Alor Setar, Kedah, was closed temporarily due to an aircraft-related incident on 19 Aug involving a Royal Malaysian Air Force aircraft. The closure was expected to remain until 4pm on 19 Aug

Kuala Lumpur International Airport (KLIA) is aiming to compete with Singapore and Bangkok as an Asia Pacific hub to attract more international airlines. According to the Chief Aviation and Strategy Officer of Malaysia Airports Holdings Bhd (MAHB), they are targeting 12 foreign airlines to fly to Malaysia in 2025, similar to their 2024 goal. MAHB took part in networking events such as Routes World and Routes Asia, and even directly visited airline headquarters to work with the airlines. He said MAHB are in talks with several airlines from Europe, China, and the Middle East. KLIA recorded 30 million passengers in H1 2025, +10% YoY, and the average load factor is around 78%. MAHB will focus on KLIA, with other international airports such as Penang, Kota Kinabalu, Langkawi, and Kuching also playing supporting roles

Batik Air will launch a charter flight service between Taitung County in Taiwan and Kuala Lumpur as part of 5-day tour packages to visit Taitung County or Malaysia. The first flight will take off on 30 Dec 2025 with Malaysian tourists and will return with Taiwanese tourists, the second flight on 3 Jan 2026. A similar service will be arranged between Taitung and HCMC on 30 Aug 2025 and to Chiang Mai in Oct 2025