Malaysia

The Ministry of Transport (MOT) held a meeting with airline management, airport operators, jet fuel suppliers, and aviation sector authorities to coordinate on the ways to address the global fuel price hike following the conflict in West Asia. The meeting discussed short-term measures to ensure air cargo transport services for goods such as food can operate as usual, especially during the Aidilfitri celebrations

Malaysia Airlines extended suspension of flights to Doha until 20 Mar, following the conflict in the Middle East. The flight service was first suspended on 28 Feb due to airspace closures

The Vehicle Access Management System (VAMS) will be trialled at Kuala Lumpur International Airport (KLIA) Terminal 2 until 30 Mar after a rollout at Terminal 1 in 2025. T2 records an average of 16,000 vehicle movements daily at its kerbsides. VAMS in T1 managed to reduce congestion by 43,000 daily vehicles overstaying beyond the allowable period

Malaysia Airlines will increase fuel surcharge in 2 stages. Phase 1 from 11 Mar will apply for all points of sale except for Japan, South Korea, Taiwan, Hong Kong, and the Philippines. Phase 2 will begin on 25 Mar and will apply to Japan, South Korea, Taiwan, Hong Kong, and the Philippines. The fuel surcharge for domestic flights is set at RM36 for business class seats and RM18 for economy class seats. Malaysia Airlines flights to: ASEAN destinations will have a RM60 surcharge for business class and RM45 for economy class Middle East (except Qatar), RM75 South Asia, RM60 North Asia (except Japan) and Greater China, RM90 for business class and RM80 for economy Australia, New Zealand and Europe, RM130 and RM110 for business and economy class respectively Qatar, RM823.62 for business class and RM431.42 for economy class The surcharge also applies to flights from London, Paris, Hong Kong, South Korea, Taiwan, and ASEAN Firefly will adjust fuel surcharge in 2 phases, Phase 1 from 11 Mar and Phase 2 from 25 Mar. Batik Air will impose a fuel surcharge of RM50 for all domestic flights, RM80 to ASEAN, RM100 to Australia, and RM80 to the Middle East, South Asia, and Central Asia, while to China and Taiwan, the surcharge will be RM90. According to an industry insider, fuel prices at Kuala Lumpur International Airport increased from RM2.33 per litre from 3-9 Mar period to RM4.23 per litre from 11-16 Mar, a 83% increase in fuel costs borne by airlines

AirAsia will host AirAsia RedRun, a running event in Da Nang, Vietnam (26 Apr); Bali (10 May) and Surabaya, Indonesia; Kota Kinabalu, Malaysia (28 Jun); Cebu, the Philippines; Phuket, Thailand; and Taipei, Taiwan in 2026. Over 100,000 participants are expected to take part in 5km, 10km or 21km race categories

Capital A CEO has said that airlines feel “pretty powerless” at the moment amidst the Middle East conflict, stating that “airlines are increasingly at the mercy” of political decisions and oil prices. However, he stressed that AirAsia remains “fundamentally strong to weather this temporary storm”

Malaysia Airlines introduced a new video campaign called ‘Pilot Parker: A story of Malaysian hospitality,’ highlighting the airline’s service. This campaign also aims to strengthen its global branding and connect with travellers emotionally

Penang Tourism EXCO said 3 new routes will be launched from Mar 2026. AirAsia will launch a Phuket-Penang service from 13 Mar, Batik Air will launch a Senai-Penang route from 18 Mar, and Qingdao Airlines will launch Qingdao-Penang from 31 Mar. He said, "By continuously broadening the flight network, Penang aims to diversify its visitor sources and enhance the resilience of its tourism industry"

AirAsia to launch direct flight between Kota Bharu and Jakarta from 16 Jun, its 20th route to Indonesia. AirAsia will be the first airline to offer flight services between Kota Bharu and Jakarta

AirAsia X’s stock price dropped due to a lack of jet fuel hedging, but its stock price rebounded by around 13% on 10 Mar. The Group CEO was initially scheduled to speak with the reporters on 9 Mar, but the event was postponed at the last minute. Singapore’s jet fuel spot price increased to $221 USD a barrel last week. A Maybank analyst said that due to the increase in fuel prices, it would push AirAsia X to swing to a loss of RM1.4 billion from the initial estimate of RM900 million net profit. The airlines have introduced temporary fuel surcharges to recoup the jet fuel costs. AirAsia previously announced plans to start a hub in Bahrain, but due to the conflict in the Middle East, Bahrain’s airspace remains closed

AirAsia MOVE has expanded its offerings to include attractions on its platform through a strategic partnership with GetYourGuide. AirAsia MOVE will offer 10% off all attraction purchases. Its CEO noted that “attractions are no longer an add-on, they are now the fastest-growing segment of global travel.” She added that research from Phocuswright shows the experiences sector recorded $271 billion USD in 2025, and is projected to reach $342 billion USD by 2029, outpacing other travel segments

Kuala Lumpur International Airport (KLIA) has resumed full operations on Runway 3, seven days ahead of schedule. The runway was fully closed from 24-26 Feb, and it operated under a shortened runway configuration while the remaining work continued

There are 153 scheduled international flights per week to Kota Kinabalu International Airport (KKIA) operated by 13 airlines, including AirAsia, Batik Air, Air Busan, Jin Air, Jeju Air, T’Way, Hong Kong Express, China Southern Airlines, Shanghai Airlines, Spring Airlines, Xiamen Airlines, Fly Scoot, and Royal Brunei. The Deputy Transport Minister said Chongqing Airlines will launch the Kota Kinabalu-Chongqing flight from 20 Mar. The Kota Kinabalu-Jeddah flight route is under consideration, and the service is expected to begin in 2026. Tawau Airport is being upgraded for RM120.9 million to increase capacity from 1.5 million to 2.5 million passengers per year. The project, which started in Aug 2025, is expected to be completed in Sep 2028. Lahad Datu Airport will be upgraded using the Airport Development Fund (ADF) allocation, and the project is expected to be finalised in Q3 2026. A detailed study is being carried out to implement upgrades at Kota Kinabalu International Airport at a cost of RM400 million

The Prime Minister announced the FlySiswa initiative will cover students from the National Academy of Arts, Culture, and Heritage, Industrial Training Institutes under the Labour Department, government-linked universities, state-owned higher education institutions, the Plantation and Commodities Institute, and trainees under the Manpower Department Training Institution. The program provides RM400 in flight subsidies for students travelling between Peninsular Malaysia, Sabah, and Sarawak

The Sabah Government is targeting its Graduan Rindu Sabah Subsidi Tiket Penerbangan (GRS/SUBFLY) assistance, similar to the FlySiswa initiative, to benefit 35,000 Sabahan students studying at higher learning institutions. The Domestic Trade and Cost of Living Minister said the program was introduced in 2024, and that in 2025, RM11.7 million was allocated to it in collaboration with the Transport Ministry. 19,505 Sabah students are studying in Peninsular Malaysia, Sarawak, and Labuan, and received RM600 in subsidy

AirAsia X has lost RM2.35 billion in market value since 2 Mar, with stock down from RM1.98 to RM1.28 at Friday’s close, its lowest level in a year, thanks to concerns over the conflict

Malaysia Airlines will resume its services to Jeddah and Madinah from 8 Mar

AirAsia X announced Jamaludin Ibrahim, former CEO of Axiata Group Bhd, has been redesignated as non-executive Chairman

AirAsia X shares were suspended after the stock dropped more than 15% on 5 Mar. The shares opened marginally higher at RM1.73 from RM1.68, before dropping to RM1.42, same level as in Apr 2025

AirAsia ranked among the top 5 airlines in the latest FTSE Russell ESG ratings, with Capital A scoring 4 out of 5 (vs 3.5 in 2024), 3.8 for AirAsia X, and 3.9 for Thai AirAsia. AirAsia scored 45% in the S&P Global Corporate Sustainability Assessment (CSA) based on AirAsia’s 2024 performance. This score is above the global airline industry average of 37%

Malaysia Airlines will add additional flights on the Kuala Lumpur to London and Paris routes from 6-8 Mar, following global travel disruptions. The airline will operate the additional flights using Airbus A350-900 aircraft, following alternative routes to avoid affected areas

Lufthansa Airlines will launch its new non-stop flights between Kuala Lumpur and Frankfurt from 25 Oct, with 5 flights per week

Malaysia Airlines flights to Doha remain suspended until 7 Mar. The airline will temporarily resume services to and from Jeddah and Madinah from 4-8 Mar

AirAsia will add daily flights with premium cabins and flatbed seating options from Kuala Lumpur to Sydney and Melbourne, Australia. The airline will increase flight frequency between Kuala Lumpur and Perth to 3 daily flights during peak season, from the current 2 daily flights. In 2026, it plans to operate up to 100 total weekly frequencies to Australia during peak holiday seasons. AirAsia will cancel the Kuala Lumpur-Darwin and Bali-Darwin flight routes from 28 Apr, noting that “passenger numbers have remained commercially unsustainable”

Following airspace closure in the Middle East, Bali Airport in Indonesia, Changi Airport in Singapore, and Kuala Lumpur Airport in Malaysia could be alternatives to Abu Dhabi, Dubai, and Doha airports. The airports in the Middle East serve as a hub to connect Africa, North America, and Europe with Asia. Visitors from the Middle East to Indonesia reached 16,014 in 2022, 42,147 in 2023, 57,620 in 2024, and 83,151 in 2025. An academic from the Faculty of Economics at Bali’s Warmadewa University in Denpasar said, “The challenge isn’t the lack of routes, but rather cost and travel time efficiency. If routes are changed, journeys could be longer and ticket prices could also increase”

AirAsia Malaysia will resume its Kuala Lumpur and Wuhan flights from 22 May with 4 flights per week

Batik Air has reported that it is closely following developments in the Middle East and its flights to the region

Malaysia Airports Holdings Bhd (MAHB) said operations at Kuala Lumpur International Airport (KLIA) Terminal 1 and 2 are stable despite several flight cancellations due to the situation in the Middle East. MAHB said 26 flights, including 13 departures and 13 arrivals, have been cancelled. MAHB added that its Crisis Response System has not registered any stranded passengers so far. MAHB will continue to monitor the development and lead response to ensure safe and efficient airport operations

Malaysia Airlines has extended the suspension of all flights to and from Doha, Jeddah, and Madinah until 4 Mar, following earlier cancellations from 28 Feb to 1 Mar due to the airspace closure in the region. The airline added that all flights to and from London and Paris Charles de Gaulle Airport will operate as usual

Malaysia Airlines cancelled some of its flights to Doha, Jeddah and Madinah from 28 Feb-1 Mar as a precautionary measure

Russian Ambassador to Malaysia said the final agreement on the resumption of direct flights between Malaysia and Russia will be finalised by 2026. The Transport Ministries from both countries are discussing this. The discussion is focused on the Moscow-Langkawi route, with potential expansion to other destinations in the future

Malaysia Airports Holdings Bhd (MAHB) imposed a RM9.1 million fine on Kuala Lumpur International Airport’s aerotrain contractors, ALSTOM IJM Construction Sdn Bhd and Pestech Technology Sdn Bhd (IJMC-Pestech Joint Venture)

AirAsia advised its guests on possible flight delays due to the temporary closure of Runway 3 at Kuala Lumpur International Airport (KLIA) to facilitate ongoing rectification works

Enlarged AirAsia X (following acquisition of AirAsia Berhad and AirAsia Aviation Group) posted RM1.96 billion Profit After Tax (PAT) for 2025. The Group posted RM4.6 billion EBITDA, RM1.3 billion Net Operating Profit (NOP), and RM22.2 billion in revenue. The Group carried 68.6 million passengers, +2% YoY, due to the weak sentiment towards Thailand tourism in Q2-Q3 2025, and a lower-than-expected number of operational aircraft. AirAsia X alone posted RM191.7 million PAT with RM3.3 billion in revenue, and carried 4 million passengers at 82% load factor in 2025. AirAsia X maintained 13.04 sen of Cost per ASK, +5% YoY. In Q4 2025, AirAsia X posted RM78.6 million PAT. AirAsia’s short-haul operations delivered RM500 million (NOP) in Q4 2025, backed by 84% of load factor and recovery in the Thai market. Thai AirAsia achieved a significant profitability in Q4 2025. AirAsia Cambodia reached profitability, with a 7.5% FY 2025 NOP margin. The AirAsia X Group CEO stated that “Operationally, the 'reset' is over and the growth phase has begun.” The group targets revenue of RM25 billion in FY2026, with EBITDA of RM5 billion and 79 million passengers

Capital A posted RM3.39 billion in revenue, RM443 million EBITDA, and Net Operating Profit (NOP) of RM171 million for the full year 2025. For Q4 2025, Capital A posted RM1.06 billion, +16% YoY, RM111 million of EBITDA, and a NOP of RM45 million in Q4 2025. Capital A gained RM9.82 billion Profit After Tax, following the disposal of its aviation assets. Capital A consists of ADE, Teleport, AirAsia MOVE, Santan, and AirAsia Next, following its disposal of the aviation business to AirAsia X Berhad. ADE posted RM247 million, +11% QoQ and +31% YoY in Q4 2025. For the full year 2025, the revenue reached RM895 million, RM205 million of EBITDA, and RM93 million of NOP AirAsia MOVE recorded RM300 million in revenue for Q4 2025, 3X QoQ and 2X YoY. The launch of the B2B business contributed 55% of revenue. Excluding B2B, the flight transactions increased by 12% QoQ, and Gross Booking Value increased to 28% QoQ. Overall transactions for Q4 2025 dropped by 15%. For the full-year 2025, the revenue exceeded RM641 million, RM84 million of EBITDA, and RM65 million in NOP

The Express Rail Link Sdn Bhd (ERL) launched Self Check-in and Self-Service Baggage Drop service at Kuala Lumpur Sentral Station to improve the speed and convenience of rail-to-air travel to Kuala Lumpur International Airport (KLIA). The Self Check-in kiosks are available for passengers of Malaysia Airlines, Batik Air, AirAsia, KLM Royal Dutch Airlines, and Ethiopian Airlines, and the self-service baggage drop facility is available for Malaysia Airlines and Batik Air passengers

Malaysia Airports recorded 9.4 million passenger movements across its Malaysian airports in Jan 2026. Kuala Lumpur International Airport recorded 5.9 million passenger movements, +8.2% and Penang Airport recorded 741,183 passengers, +3.8% YoY

Malaysia Airlines will add a third daily non-stop flight to Doha from 30 Jun, as part of its codesharing agreement with Qatar Airways

SriLankan Airlines partnered with Jetwing Travels to host a B2B networking event in Kuala Lumpur called “Sri Lanka: A Journey Beyond”. The event saw 85 travel agents and tour operators attend

The Tourism Minister said Kuala Lumpur International Airport (KLIA) welcomed 8,840 tourists via 32 flights from 7.00am-10.30am on the first day of the Chinese New Year. Terminal 1 KLIA recorded 6,500 passengers and Terminal 2 recorded 1,500

Malaysia Airports Berhad is preparing for airside passenger transfers between Kuala Lumpur International Airport T1 and T2 without baggage from Q3 2026 for the first Phase, allowing them to skip repeat security screening. The transfers will be by bus and the MAHB is preparing lounges, routes and operational procedures