KUALA LUMPUR (Aug 27): Malaysia Airports Holdings Bhd (MAHB) has booked a record quarterly net loss in the quarter ended June 30 (2QFY20) of RM91.07 million which widened from RM20.39 million in the preceding quarter, as it faced the full brunt of local and cross-border travel restrictions during the Movement Control Order period.

MAHB’s loss per share expanded to 6.35 sen from 2.09 sen in the preceding quarter 1QFY20, with losses from its airport operations and hotel business.

The net loss was offset by a current tax item amounting to RM140.81 million, as well as deferred taxation of RM37.67 million.

“The higher losses however cushioned with the recognition of prior year tax recoverable and deferred tax assets recognised for current period business losses,” MAHB said.

Revenue, it said, fell quarter-on-quarter (q-o-q) by 70.9% to RM272.18 million from RM933.84 million, as passenger traffic fell by a steep 94.5% q-o-q.

In the period, MAHB’s top line was largely constituted by the non-aero operations, which include project and repair maintenance, hotel business, as well as agriculture and horticulture activities.

On a year-on-year (y-o-y) basis, MAHB came off 2QFY19 net profit of RM160.09 million or 8.78 sen per share while revenue was down 78.42% from RM1.26 billion.

For the six-month period ended June 30 (6MFY20), MAHB's net loss stood at RM111.46 million or 8.45 sen per share — a swing from net profit of RM309.66 million or 16.94 sen per share. Half-year revenue more than halved to RM1.21 billion from RM2.51 billion.

“MAHB’s network of airports recorded 26.9 million passengers in 1HFY20, a contraction of 60.5% over the corresponding period in the prior year.

During the same period, the group’s traffic for international and domestic passengers contracted by 63.6% and 57.7% respectively, it said, with group aircraft movement down 50.2% on-year.

While Malaysia and Turkey June traffic performances are encouraging, post-lockdown demand for air travel is expected to be in stages with the domestic sector leading the recovery, MAHB said.

“Resumption of international traffic is expected to be gradual mostly due to dependence on travel-bubble arrangements and a slower easing of border restriction as countries remain cautious and this is estimated to reflect better traffic in the coming months,” it added.

Meanwhile, it has also undertaken an 18-month cost optimisation plan, which include steps to rebase its costs, to prioritise its capex and to conserve cash reserves to meet its financial and operational obligations.

“The group had also started to pare down non-essential operating costs with the aim of lowering it by at least 20%,” it added.

Shares of MAHB rose three sen today to close at RM5.25, valuing the airport group at RM8.71 billion. Year to date, the counter has retreated by almost 31%.