From new routes to renewed MH370 search: Malaysia’s aviation sector reaches new heights in 2025
MALAYSIA’S aviation sector experienced significant milestones and operational challenges in 2025, including fleet expansions, new international routes, and the announcement that the search for Malaysia Airlines (MAS) flight MH370 will resume on Dec 30 next year
Bernama reported that passenger demand surged this year, with Malaysia Airlines reinstating Paris and Brisbane routes, and British Airways resuming London-KL flights after a five-year hiatus.
AirAsia expanded into Darwin, Taipei, Pontianak, and Kunming, while newcomer Ascend Airways Malaysia began operations in November.
Several Chinese carriers, including Jiangxi Air, Juneyao Air, China Southern, and China Eastern Airlines, also increased services to Kuala Lumpur.
Fleet expansions supported growth, with Malaysia Aviation Group (MAG) receiving seven A330neo and eight Boeing 737-8 aircraft, while exercising options for an additional 50 aircraft.
Capital A secured 50 Airbus A321XLR jets in a US$12.25 billion deal, alongside finalising its PN17 exit strategy. AirBorneo, the rebranded MASwings, is set to operate independently across Sabah, Sarawak, and Labuan from January 2026.
Airport upgrades and privatisation reshaped the sector. Malaysia Airports Holdings Bhd (MAHB) was delisted in February and is now under the Gateway Development Alliance consortium.
KLIA’s aerotrain resumed in July after a RM456 million upgrade, achieving 98.41% operational availability, while Terminal 1 received RM30 million in enhancements.
The Vehicle Access Management System was enforced in December to reduce kerbside violations, and Airport FastTrack services were expanded.
The sector also faced disruptions, including international airspace closures in Pakistan and the Middle East, London Heathrow power outages, and a cyberattack demanding a US$10 million ransom, which the government rejected.
According to MAHB, resilience measures have been strengthened ahead of Visit Malaysia Year 2026 (VM2026).
IATA Asia-Pacific vice-president Sheldon Hee said Malaysia is well-positioned to capture the next wave of aviation demand.
“With the RM50 million in matching grants under Budget 2026 and strengthened bilateral agreements, the country can further expand connectivity and attract new carriers,” he said.
Regulatory reforms included the merger of the Malaysian Aviation Commission (Mavcom) into the Civil Aviation Authority of Malaysia (CAAM), creating a single regulator overseeing technical, safety, and economic functions.
International recognition came with Malaysia’s re-election to the ICAO Council (2025-2028 term) and KLIA ranking among the world’s top 10 airports for terminals handling over 40 million passengers.
Despite operational challenges, Malaysia’s aviation industry is poised for further growth in 2026, underpinned by expanded connectivity, upgraded infrastructure, and stronger regulatory oversight.