Malaysia Airlines – confident on tourism growth, mindful of headwinds
KUALA LUMPUR: Malaysia Airlines is confident on the continued recovery of tourism in 2025 and beyond, supported by stronger consumer confidence, greater mobility and improved economic conditions.
However, the airline remains cautious, as rising tariffs, inflationary trends and global supply chain disruptions are expected to exert ongoing pressure on its operational costs.
Malaysia Aviation Group chief commercial officer of airlines Dersenish Aresandiran said as a premium carrier, Malaysia Airlines is focused on delivering a compelling product offering that supports long-term growth.
This includes ongoing fleet modernisation, enhanced passenger comfort and an overall improved travel experience.
'We are committed to ensuring network accessibility, offering flexible fare options and strengthening customer engagement through our Enrich loyalty programme and lifestyle integrations,' he told SunBiz.
Dersenish said enhancing partnerships with government stakeholders to boost incentives for domestic travel, particularly during peak travel periods, remains a critical strategy.
He noted that as the national carrier, Malaysia Airlines is working closely with Tourism Malaysia in supporting the goals of Visit Malaysia 2026 in strengthening air connectivity across the country and enriching the domestic tourism landscape.
'In tandem, we are actively working with state tourism bodies, including Sarawak Tourism Board, to support events such as the Rainforest World Music Festival, and Langkawi Development Authority (Lada) to continue positioning Langkawi as a top-tier domestic destination. These collaborations reinforce our commitment to growing Malaysia's domestic tourism ecosystem and supporting regional economic development,' he said.
Malaysia Airlines has signed a memorandum of understanding with the Ministry of Tourism, Arts and Culture (Motac) to put in place promotional activities.
'Building on past festive season initiatives that boosted travel through subsidies, promotions and targeted discounts, there is strong potential to formalise and expand these partnerships.
'By working closely with tourism boards, regional governments and related ministries, new incentive schemes such as travel vouchers, accommodation subsidies and special fare promotions can be developed.
'These initiatives would not only stimulate higher domestic travel demand during high-traffic periods but also support broader national tourism recovery goals, promote regional economic activity, and strengthen public-private sector cooperation in the travel and aviation industries,' Dersenish said.
The airline has seen increased domestic airport arrivals (+6.1%), validating the importance of maintaining and optimising intra-Malaysia routes.
Among the destinations that recorded significant year-on-year increases in passenger load factors from Kuala Lumpur are Bintulu (+11%), Langkawi Tawau, and Sandakan (+9%), Miri and Penang (+8%), Alor Setar, Kota Bharu, Kuantan, and Sibu (+7%), Kuching, Kuala Terengganu and Labuan (+6%), and Johor Bahru and Kota Kinabalu (+4%).
Meanwhile, sister airline Firefly saw its domestic passenger load factors increase by more than 6% in 2024 versus 2023, driven by key routes such as from Subang to Penang and Johor Bahru.
In terms of increased capacity, the top domestic routes that saw an increase in available seat kilometres (ASK) year-on-year are Kuala Lumpur to Kota Bharu (+19%) and Johor Bahru (+10%) by Malaysia Airlines, and from Kota Kinabalu to Tawau (+77%) and from Kuching to Tawau (+33%) by Firefly, respectively.
Dersenish said Malaysia Airlines has strengthened its network connectivity, particularly to high-demand coastal and beach destinations, reflecting the growing interest in these routes.
In addition, the airline has ramped up its marketing efforts to promote domestic tourism through the 'Bonus Side Trip' programme which includes seven key destinations: Alor Setar, Langkawi, Johor Bahru, Kota Bharu, Kuala Terengganu, Kuantan and Penang.
This initiative supports Malaysia's economic growth while contributing to the broader ambitions of Visit Malaysia Year 2026.
Touching on fleet modernisation and expansion, Dersenish said Malaysia Airlines' commitment to modernise its fleet is underscored by the recent orders for the Boeing 737-8 and 737-10 aircraft under the second phase of its narrow-body replacement programme.
He added that this investment will enhance fuel efficiency, reliability and the overall passenger experience.
'The 737-8, which has been in service with Malaysia Airlines since 2023, marks the beginning of our narrow-body fleet renewal. Additionally, we are upgrading some key domestic flights, including services to East Malaysia, by introducing wide-body Airbus A330 aircraft during peak times to increase capacity and enhance cargo capabilities,' Dersenish said.
Malaysia Airlines remains committed to supporting national connectivity and affordability.
During major festive seasons, Dersenish said, the government deploys subsidised fixed-fare promotions to ensure travel remains accessible to all Malaysians.
'Meanwhile, we are enhancing Firefly's connectivity from Subang with over 2,100 weekly flights to eight destinations, including Kota Kinabalu and Kuching,' he added.
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