The research house said completion of KLIA2, which is currently ahead of schedule, would provide airport operator, Malaysia Airports Holdings Bhd (MAHB), the chance to seize the opportunity from the robust regional air traffic.
“Regional air traffic remains resilient and this is evident from the double-digit growth of total passenger movements – Jakarta jumped 21.4% year-on-year (y-o-y), Bangkok rose 14.1% y-o-y and Changi was up 11.6% y-o-y,” it said in a statement.
MIDF Research said the boom in Asia’s air travel also bodes well, mitigating the economic downturn in Europe.
The performance of the Kuala Lumpur International Airport, however, lagged regional peers in terms of total passenger movements, with 4.8% growth, derailed by the 10% capacity cut by Malaysia Airlines (MAS), but was partly offsetted by foreign airlines filling up the capacity gap, it said.
The new KLIA2 is expected to increase passenger numbers and landing aircraft as well as passenger service charge rate, it said.
The research house reiterated “buy” recommendation for MAHB, with an unchanged RM6.72 target price.