Malaysia

The Ministry of Transport has introduced several measures to support the aviation industry amidst uncertainty, including allocating RM5 million for flight ticket rebates for travel between Peninsular Malaysia and East Malaysia from May-June 2026, an extension of up to 60 days for payment of navigation fees and charges, exemptions on aircraft parking fees and 2 month deferment of Passenger Boarding Bridge and Common Infrastructure Charges

AirAsia X’s shares dropped by as much as 5.7% after its announcement of Q1 2026 numbers, with its stock falling 42% since the onset of the Middle East crisis

Malaysia Airports Berhad noted that it remained “positive” on its 2026 outlook, despite uncertainties, and that all parties must work together to resolve issues. They reported there was a dip in passenger traffic for March and April 2026, which was “unavoidable”, with some segments seeing a 50% decline vs earlier projections. However, they reported that some airlines have started to return over the past few weeks, and that passengers switching to East Asia could be a positive development for them. It is still optimistic on its target to see 15 new airlines in 2026, with 6 new airlines onboard already

AirBorneo is looking to introduce direct international flight routes to Miri, according to the Deputy Minister of Transport. He added that the Sarawak government is working with Malaysia Airports Holdings Berhad (MAHB), Sarawak Tourism Board (STB), and other relevant agencies to explore new international routes to Sarawak. AirBorneo is also looking to establish commercial routes connecting Kuching, Sibu, Bintulu, and Miri

During the Chinese New Year period, 604,675 Chinese tourists visited Malaysia. The Tourism Minister said airlines, including China Eastern Airlines and Shanghai Airlines, increased their routes from 82 to 106, and total flights increased to 424 for the Chinese New Year period

Malaysia Aviation Group (MAG) will offer additional flight services for the Eid al-Adha, Kaamatan, and Gawai holidays, with subsidised fares at RM499 one-way on selected East Malaysia routes. Malaysia Airlines will operate an additional 62 flights for Kota Bharu, Labuan, Tawau, Sandakan, Kuching, Sibu, and Miri routes. Travellers can get the subsidised fare for travel between 26-29 May

Malaysia Airlines has become the Official Airline Partner of ITB China 2026, from 26-28 May in Shanghai. Malaysia Aviation Group Chief Commercial Officer of Airlines said this partnership will improve their engagement with travel agents, corporate customers, and MICE partners, and will strengthen tourism and business connections between Malaysia and China. Malaysia Airlines will launch daily flights between Kuala Lumpur and Shenzhen on 2 Jul, and between Changsha and Kuala Lumpur on 9 Jul

Petronas delivered Malaysia’s first sustainable aviation fuel (SAF) to Kuala Lumpur International Airport for Malaysia Aviation Group (MAG). MAG will integrate SAF for its Kuala Lumpur-London route from 1 to 16 Sep. The SAF was blended locally at Petronas’ blending facilities

AirAsia X will suspend its 4 weekly Kuala Lumpur-Karachi flights from 12 May to 30 Jun

Air India has reduced weekly flights between Delhi and Kuala Lumpur from 10 to 5 weekly from Jun to Aug

Batik Air has cancelled several domestic routes: Johor Bahru-Penang from 10 May to 24 Oct Kota Kinabalu-Kuching permanently cancelled from 1 Apr Kuala Lumpur-Alor Setar from 30 Mar to 24 Oct Kuala Lumpur-Bintulu from 4 Apr to 30 Apr and from 4 May to 20 May Kuala Lumpur-Miri from 30 Mar to 24 Oct (except 1 May) Kuala Lumpur-Sibu from 3 Apr to 30 Apr, 4 May to 20 May

Sabah Tourism Minister said they might revise the state’s tourism target based on developments in airline connectivity and market conditions. He said Sabah is on track to reach its 4 million arrivals target for 2026. He noted several routes to Sabah have been affected, such as the Singapore-Kota Kinabalu route from 13 May to 30 Nov, the Jakarta-Kota Kinabalu route from 16 Apr to 21 May, and the HCMC-Kota Kinabalu route from 1 Jul by AirAsia. Batik Air suspended its Seoul-Kota Kinabalu route from 28 Apr. AirAsia also suspended its Sibu-Kota Kinabalu and Bintulu-Kota Kinabalu routes from 8-30 Jun. In Q1 2026, Sabah welcomed 932,970 visitors

Malaysia Airlines reported above 90% on-time performance (OTP) throughout Apr 2026, while exceeding its 85% target since Jan 2026. The airlines recorded a 30% YoY increase in passenger traffic, with the traffic grew by 8% YoY in Apr. The latest Airlines 50 2026 report by Brand Finance shows Malaysia Airlines brand value increased to $771 million USD, +27%

The Civil Aviation Authority of Malaysia (CAAM) noted that Malaysia’s airspace operations remain resilient, with key corridors such as Kuala Lumpur-Singapore, Jakarta-Kuala Lumpur and Kota Kinabalu-Kuala Lumpur seeing high flight frequencies

AirAsia X has cancelled its service from Kuala Lumpur-Tashkent in Jun, resuming services with 4 times weekly from 1 Jul

Batik Air Malaysia has cancelled several routes: Ipoh-Singapore from 11 May, 4 weekly services cancelled Kuala Lumpur-Dubai service resumption has been postponed from 1 Jun to 25 Oct at the earliest Kuala Lumpur-Haikou weekly two flights cancelled from 21 Jun to 28 Aug Kuala Lumpur-Kochi flights reduced from 4 to 3 weekly from 06 Jun Kuala Lumpur-Padang service will be reduced from 4 to 2 weekly from 28 Jun Kuala Lumpur-Semarang flight launch with 4 flights per week from 27 Jun has been cancelled Kuala Lumpur-Taipei Taoyuan flights reduced to 3 from 7 weekly flights starting 1 Jun Penang-Singapore weekly 4 flights are cancelled from 5 May

Malaysia Airlines and Tourism New Zealand signed a 2-year partnership to support travel demand to New Zealand through marketing initiatives, to increase visitor arrivals and visibility across key markets. Malaysia Airlines operated 10 weekly flights between Kuala Lumpur and Auckland. In Jan and Feb 2026, New Zealand welcomed 32,200 Malaysians, +11.5% YoY

Biman Bangladesh Airlines will add extra flights for its Dhaka-Kuala Lumpur flight on 23, 24, and 26 May with its Boeing 777-300ER

Capital A CEO, Tony Fernandes, said he will launch a new airline, which will be announced in the next month or so. The group will transfer some planes to the new airline, but it did not provide any further details. AirAsia decided not to hedge fuel costs, which has led to a 35% drop in its shares since the Middle East conflict started. Fernandes said only those with funds are hedging oil, and “over a longer period, hedging never really works”. He also said, “Why waste a crisis? There are opportunities in a crisis," referring to the Middle East conflict, and expects it won’t last longer. AirAsia is looking to raise $600 million USD in bonds and is in talks with banks in Malaysia for a refinancing loan to reduce interest costs. He plans to meet Canadian pension funds to attract investors. AirAsia is likely to miss its initial profit target and is expected to make an official announcement soon. AirAsia has been in discussion to expand in Vietnam, according to sources

AirAsia announced that it will place an order for 150 Airbus A220 jets manufactured in Canada, with an option for another 150 aircraft if Airbus makes a larger version of it. Reuters reported that Airbus is looking to launch a larger version of the plane called A220-500. AirAsia will be the “launch customer” of the A220’s new 160-seat cabin configuration

Capital A is in talks with a major hotel chain to extend its AirAsia brand into the hospitality sector. Its subsidiary AirAsia Next, which owns AirAsia, AirAsia MOVE, and Santan brands, will manage this new venture

Capital A reported YoY growth in its business segment despite the Middle East conflict, supported by an increase in demand for the Chinese New Year and Hari Raya. Santan (F&B unit) recorded 4.5 million in-flight transactions, +6% YoY and stronger demand for pre-booked meals in Q1 2026 and e-commerce sales AirAsia MOVE recorded 23% YoY increase to 17.1 million. AirAsia flight seats sold increased 4% YoY, and ancillary units sold increased by 15% Wano (B2B segment) recorded 9 million seats, +16% YoY, driven by stronger OTAs and new agents from China, India, Japan, and Korea Teleport recorded 96,783 tonnes of cargo (+25% YoY) and 61.7 million parcels (+122% YoY), supported by e-commerce demand, especially between Malaysia and China Asia Digital Engineering completed 25 aircraft checks, +13% QoQ. Its workshop orders increased to 7,331, +12% YoY, driven by higher fleet utilisation and third-party demand The rewards loyalty program recorded over 37 million active members, and the points issued increased to 1.6 billion, +30% YoY

Malaysia Airlines flight to Jeddah was diverted to Muscat International Airport in Oman as a precautionary landing following a technical issue on 4 May. The Haj flight service carried 278 pilgrims. Malaysia Airlines, though its AMAL service (for Haj flights) is inspecting the aircraft before resuming the flight

The Tourism Ministry’s Secretary General stated that they are looking to increase tourist arrivals to Langkawi through direct flights, following a drop in ferry services due to high diesel costs. The Ministry has increased promotional activities in South Korea, Japan, Australia, China, and other ASEAN countries, which are not affected by the West Asia conflict. He added they aim to make the island an international tourism hub by encouraging international tourists, such as those from Poland, to fly directly. He also mentioned that there is a drop in tourist arrivals due to ticket cancellations from conflict-affected areas, especially Dubai, but the impact is not significant as fewer Arab tourists visit Malaysia. He said they will look at the Q2 2026 tourist arrivals to see the impact of the conflict

The Transport Minister announced the aerotrain service at Kuala Lumpur International Airport (KLIA) is expected to resume its 24-hour service by the end of May, subject to approval from the authority. The service is being suspended at night for track maintenance and inspections. Malaysia Airports Holdings Bhd (MAHB) is doing all necessary tests and has submitted a full report to the Land Public Transport Agency (APAD) for further assessment

Base Maintenance Malaysia (BMM) is planning to add a third hangar (Hangar 3) to expand its aircraft maintenance operations in Subang and to take work from third-party airlines. Hangar 3 is expected to begin operation between 2026 and 2027, and will double its capacity to six. BMM is a SIA Engineering Company’s (SIAEC) subsidiary. BMM signed an agreement with Khazanah Nasional Bhd to lease hangar facilities at Sultan Abdul Aziz Airport in Subang for 15 years, with an option to extend for 15 years. This is part of a long-term lease plan to develop the airport as a regional MRO hub

The Tourism Minister of Malaysia asked Lion Air Group to increase flight frequencies to Sibu and Bintulu. He said Bintulu is a hub for heavy industrial development, which requires foreign technical personnel, during a meeting with Lion Air Group. He also added that currently, passengers are transiting via Singapore or Thailand to the Middle East and Europe, but Malaysia can improve in this area. Batik Air is looking to launch direct routes to Kuala Lumpur from Palembang, Banda Aceh, Pontianak, Padang, Banjarmasin, Makassar, and Balikpapan, and the Penang-Batam route. The Minister said they are planning to organise tourism sales exhibitions in major cities like Jakarta, Medan, Surabaya, and Denpasar, and is targeting around 4,000 visitors

Malaysia Airlines will restart its Kuala Lumpur-Doha flight from 2 Jul, with one service daily. The remaining frequencies will be suspended until 24 Oct

Sarawak Deputy Premier stated that they are looking to launch a direct route between Kuching and Kuantan by the end of 2026, subject to aircraft availability. They are also looking at possible collaboration with AirAsia or via Air Borneo. He added that there are direct flights to Kota Bharu, Langkawi, Johor, and Singapore from Sarawak

The Sabah Tourism Minister is preparing to face the effect of the Middle East conflict, especially as airlines begin to rationalise routes. He said that airlines cited profitability and operational concerns for reducing direct flights to Sabah, including flights to Kota Kinabalu and Tawau. He added that Sabah is more vulnerable as 90% of the tourists to the state arrive via air. In Jan and Feb 2026, Sabah recorded a 17.7% YoY increase in international arrivals. As part of an effort to alleviate the impact, the state is offering strategies to position Sabah as a “fly-through” destination, to allow people to transit through Kota Kinabalu. Sabah is strengthening collaboration with airlines and digital platforms such as Klook, Trip.com, and Agoda to stimulate local travel demand. Sabah generated RM5 million in domestic tourism package sales at the MATTA Fair in Kuala Lumpur. Sabah will prepare several short- and medium-term intervention measures for the tourism sector’s sustainability ahead of the Visit Sabah 2027 campaign

Ascend Airways Malaysia received its first Boeing 737-800 aircraft and is looking to start passenger operations in Jul 2026. The airline received its air operator’s certificate and air services permit at the end of 2025, and has been operating cargo flights. The airline is set to receive two more aircraft in May. However, Ascend Airways’ UK is suspending its services due to operational pressures from increase in fuel prices and the wet-lease market. Both airlines are part of the wet--least company Avia Solutions Group

PKFARE, a travel wholesaler, announced its flight + hotel packaging partnership with Wano, a B2B travel distribution platform, and AirAsia MOVE. Wano will manage flight distributions, and AirAsia MOVE will drive consumer demand

Srilankan Airlines expanded its codeshare partnership with Malaysia Airlines for Brisbane, Chiang Mai, Da Nang, Johor Bahru, Kuching, Phnom Penh, Phuket, and Yangon from Kuala Lumpur

Malaysia Airports Holdings Bhd (MAHB) reported 27.4 million passenger movements in local airports in Q1 2026, including 16.9 million passenger movements, +14.4% YoY, at Kuala Lumpur International Airport (KLIA). In Mar 2026 alone, local airports recorded 9.1 million passenger movements, including: KLIA recorded 5.6 million passenger movements, and 3.1 million passengers from 14-29 Mar, during Eid al-Fitr Penang International Airport, 412,958, +11% MoM Kota Kinabalu Airport, 551,049, +2% MoM Upgrades are being carried out to regional airports, including introducing new baby care rooms in Langkawi and Kuching, while Kuatan, Labuan, and Lahad Datu have been upgraded with new check-in counters. MAHB has added new routes, including Nanjing-Kuala Lumpur, Chongqing-Kota Kinabalu, Wuxi-Kuala Lumpur, Batam-Kuala Lumpur, Phuket-Penang, Guiyang-Kuala Lumpur, Guiyang-Kuching, Colombo-Kuala Lumpur, Yangzhou-Kuala Lumpur, and Qingdao-Penang

AirAsia X has proposed changing its name to AirAsia Group Bhd to the Companies Commission of Malaysia. The name change will be subject to shareholder approval at the company AGM

The Regional Corridor Development Authority (Recoda) announced that the New Lawas Airport construction in Sarawak is progressing with work on the 4km airport access road and Phase 1 of the airport civil works. The work is targeted for completion by Apr 2028

A disruption was reported at the baggage handling system at Kuala Lumpur International Airport (KLIA) on 18 Apr. The disruption was triggered by a high-voltage power fault at a Bukit Raja substation, according to the Transport Ministry. During the incident day, 23,769 bags were processed between 5.00pm and 10:30pm, and 1,061 bags were shortshipped, while 120 bags were reported missing on arrival. The Transport Ministry Secretary-General chaired an emergency meeting with the Civil Aviation Authority of Malaysia (CAAM), Malaysia Airports Holdings Bhd (MAHB), airline representatives and operational teams. A cabinet note on the incident will be tabled on 22 Apr, and MAHB has been ordered to submit weekly progress reports

Batik Air is offering discounts up to 35% on selected economy fares, to meet the demand for flexible travel options from 30 Apr 2026 to 31 Jan 2027

The Transportation Ministry has called for an investigation into the breakdown of the baggage handling at Kuala Lumpur International Airport T1 on 18 Apr, which saw delays of 2-4 hours for a “significant number” of passengers. The Civil Aviation Authority of Malaysia will investigate and decide if punitive action should be taken against Malaysia Airports Holdings Berhad (MAHB). The Minister stated that for Malaysia to be a world-class hub, it needs a “genuine culture of accountability and responsibility”

Deutsche Bank offered a RM909 million ($230 million USD) private deal for AirAsia Aviation Group under an 18-month financing, structured as a revenue bond backed by the airline’s ticket sales, according to a Bloomberg report

Cathay Pacific will reduce flights from Hong Kong to Kuala Lumpur and Penang from 16 Mar to 30 Jun: Kuala Lumpur from 178 weekly flights (47,907 seats) to 153 flights (35,775 seats) Penang to 46 flights (a drop from 13,718 to 12,638 seats)

Airbus President for Asia Pacific stated that Malaysia is their third largest market in Asia Pacific after China and India, and Malaysia is well-positioned to improve its role as a regional long-haul hub for aviation with a strong demand for connectivity in the region. He added that, “There is room for a third super connector in this region, and Malaysia, with KLIA, can play that role”. Airbus maintains a significant footprint in Malaysia, through engineering and maintenance, repair and overhaul (MRO) facilities in Kuala Lumpur, and a regional helicopter hub and training centre in Subang. Malaysia is also an important supplier, such as Composites Technology Research Malaysia (CTRM), for the production of composite aerostructures for Airbus aircraft

The runway extension project at the Sultan Ismail Petra Airport (LTSIP) in Kelantan is expected to be completed by the end of 2027. The Transport Minister stated that the existing runway can support international flight operations to ASEAN countries such as Indonesia and Thailand. He added that once the runway extension is completed, it could support long-haul flights of about 5-6 hours, such as to China or South Korea. Malaysia Airlines, AirAsia, Firefly and Batik Air Malaysia operate 125 weekly flights to 6 destinations such as Kuala Lumpur, Kota Kinabalu, Johor Bahru, Kuching, Penang and Subang from Kota Bharu