The Malaysian Aviation Commission (Mavcom) recently revised its forecast for Malaysia’s air passenger traffic in 2021 to contract by 22.9%-29.1% year-on-year (YoY) due to resurgence of Covid-19 cases and the implementation of Movement Control Order 2.0 (MCO 2.0).

Wong remained an ‘Underweight’ call on the sector and downgraded Malaysia Airports Holdings Bhd (MAHB) to ‘Sell’ from ‘Hold’ at lower target price (TP) of RM4.85 from RM5.40.

Aside from the overall drop in passenger movements, the HLIB report yesterday stated that MAHB also suffers from lower international mix due to restrictions by various governments, while only domestic travel is still allowed with certain restrictions/conditions in place. Read more