KUALA LUMPUR (Aug 30): Malaysia Airports Holdings Bhd’s (KL:AIRPORT) net profit for the second quarter doubled to RM205.80 million from RM102.53 million a year earlier, thanks to higher contributions from associate and joint venture companies.

Earnings per share for the three months ended June 30, 2024 (2QFY2024) rose to 11.48 sen, from 5.31 sen previously, the group reported in a stock exchange filing on Friday.

Revenue rose 11.93% to RM1.38 billion from RM1.23 billion in 2QFY2023, driven by higher passenger volumes resulting from new airline operations, resumption of airline routes, introduction of new services, the 30-day visa-free policy for Chinese and Indian travellers, delivery of new aircraft, and the haj season.

Share of results from MAHB's associates jumped to RM6.29 million from RM2.69 million, primarily due to higher profits from Kuala Lumpur Aviation Fuelling System Sdn Bhd, MFMA Development Sdn Bhd and Alibaba KLIA Aeropolis Sdn Bhd.

Share of results of joint ventures (JVs), meanwhile, recorded RM2.1 million in profit compared to a RM4.1 million loss a year earlier, helped by a RM2.7 million profit contribition from Segi Astana Sdn Bhd, reversing a loss of RM5.6 million previously.

MAHB did not declare any dividend for the quarter.

For the cumulative six months (1HFY2024), MAHB’s net profit surged 146% to RM395.79 million from RM160.72 million in the previous January-June period, as revenue grew 20.47% to RM2.73 billion, from RM2.27 billion.

Looking ahead to FY2024, MAHB anticipates continued growth, with passenger traffic expected to near pre-pandemic levels. Domestically, the easing of visa requirements has significantly boosted passenger arrivals, especially from key markets such as China and India, said the group.

“MAHB continues to collaborate closely with the Malaysian government to enhance passenger experience and streamline arrivals, such as the expansion of eGate facilities for travellers from 63 countries, including China and India,” it said.

Additionally, MAHB said its focus on upgrading infrastructure, boosting operational efficiencies, and enhancing passenger services positions the group to effectively leverage the expected rise in air travel demand.

The airport operator also pointed out the recent introduction of new aviation service charges by the Malaysian Aviation Commission (Mavcom) for the period from June 2024 to December 2026. These charges include a supplemental loss capitalisation mechanism, which aims to improve cost recovery across the network of airports.

“Overall, with a robust recovery trajectory, strategic initiatives to boost passenger numbers, and positive industry forecasts, the prospects for MAHB in the coming year appear promising. We remain optimistic about the continued growth and success of MAHB, driven by the collective efforts to ensure a seamless and enjoyable travel experience for all passengers,” the group said.

Shares of MAHB gained 26 sen or 2.54% to close at RM10.50 on Friday, giving the group a market capitalisation of RM17.52 billion. Year-to-date, the counter has climbed over 40%.