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Malaysia aviation: growth slows, profits under pressure

Analysis

Malaysia has become a challenging market for airlines, set back by intense competition and volatile demand. Six of Malaysia's seven carriers were unprofitable in 2018 and the seventh, AirAsia, generated its smallest operating profit in four years. An uncertain future for Malaysia Airlines is a destabilising feature

Passenger growth at Malaysia's flagship airport, Kuala Lumpur International, slowed from 11.2% in 2017 to 2.4% in 2018. The growth in the overall Malaysian market slowed from 10% in 2017 to 3% in 2018.

Growth is likely to remain in the low to middle digits in 2019. Profits continue to be under pressure and overcapacity is once again a concern.

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